Question

Nemi’s problem is to analyze the effect of Advertisement on sales. Firstly, He wants to
understand the presence of a linear relationship between the sales and ‘amount spent in
advertisement’. He also wants to run a correlation and regression to know whether he
should keep spending money on Advertisements or not. If sales figures are not affected
by advertisement, he should not spend money on it.

Answer 1

Answer:

u4ueijjyhj

Explanation:

grjkeg4fheisi

Answer 2

Answer:

We can give the answer by using a graph.

• The appropriate graph for this analysis is a scatter plot which will give a trend and points.
• It may form a upward trend which forms a straight line.
• Karl Pearson's Correlation Coefficient

The correlation coefficient is given by running the command

CORREL(B1:B21,C1:C21) which is 0.8878.

• The correlation is positive and is more than 0.75.
• The critical value of correlation for n=20 at 5% level is 0.4438 and since our correlation 0.8878>0.04438, we conclude that the correlation coefficient is significant at 5% level of significance.

The sales increased by many fold when spent a little amount on advertising.

So he should spend on advertising.

#SP J2