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dimaraw [331]
3 years ago
15

Now that we have our linear regression model, let’s try to make a prediction for the sales given a new set of advertising budget

s as follows: new.dat <- data.frame(TV=200, Radio=10, Newspaper=20) You are required to report the predicted sales as well as the lower and upper bound for the 95% prediction interval. What will you report?
Mathematics
1 answer:
ValentinkaMS [17]3 years ago
5 0

Answer:

The predicted sales for the new set of advertising budgets is 14.

Step-by-step explanation:

The linear regression model is:

\text{Sales}=2.9389+0.0458\cdot(\text{TV})+0.1885\cdot(\text{Radio})-0.0010\cdot(\text{Newspaper})

Compute the value of sales for:

TV = 200,

Radio = 10,

Newspaper = 20

\text{Sales}=2.9389+0.0458\cdot(\text{TV})+0.1885\cdot(\text{Radio})-0.0010\cdot(\text{Newspaper})

        =2.9389+0.0458\cdot(200)+0.1885\cdot(10)-0.0010\cdot(20)\\=2.9389+9.16+1.885-0.0002\\=13.9837\\\approx 14

Thus, the predicted sales for the new set of advertising budgets is 14.

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