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.
Part 2:
CORN SOYBEANS WHEAT
4152 1127 1352
6639 1798 2381
4175 1636 2420
7672 1861 2595
8876 2099 2424
8226 1940 2091
7131 1938 2108
4929 1549 1812
7525 1924 2037
7933 1922 2739
? 1181 2250
The International Agricultural Producers publishes annual data on various selected farm products. Shown above are the unit productions figures (in millions of bushels) for three farm products for 10 years. Use this data and multiple regression analysis to predict corn production by the production of soybeans and wheat.
Using 150 words or more comment on the results of your data analysis.