Problem: The following data were collected on the study of the relationship between a company's retail sales and advertising dollars: Retail Sales ($) Advertising ($) 29,789 16,893 35,434 18,398 38,732 20,376 43,585 22,982 46,821 25,732 49,283 27,281 52,271 32,182 55,289 35,298 57,298 36,281 58,293 38,178
(1) Obtain a linear regression line for the data.
(2) Compute a correlation coefficient and determine the strength of the linear relationship.
(3) Using the linear regression equation, develop a forecast of retail sales for advertising dollars of $40,000.
Please give the solution in Excel.