PART 1
Shown below are the sales revenue and advertising cost data for seven
companies published by International Advertising Age.
COMPANY ADVERTISING ($ MILLIONS) SALES ($ BILLIONS)
Wal-Mart 1,073 351.1
Ford Motor 2,577 160.1
Airbus 4,898 68.2
Reuters Group 2,822 93.2
ATT 3,345 63.1
Fujifilm 829 91.7
Toyota 3,296 207.3
Use the above data to develop a regression line to predict the amount of advertising by
sales. Compute the ‘r2’ from the regression output.
Discuss, in at least 150 words, regression models and identify their relative strengths
and weaknesses.