Simple Linear Regression -- Sales

"A recent study was conducted to determine the relation between advertising expenditures and sales of widgets for the first year of production."

You would like to determine the effect of your ad expenditures in predicting sales.

The following data was collected:

Ad Expenditures Sales 1. Produce a scatterplot with linear trendline

40,000 289,000

55,000 423,000

35,000 250,000

50,000 400,000

43,000 335,000

60,000 470,000

52,000 408,000

39,000 320,000

47,000 415,000

38,000 389,000

2. Produce the regression equation for the ad expenditures predicting sales.x

3. What is the slope of the line? x

4. What is the estimated sales if the ad expenditures are $65,000? x

5. Interpret in words the R square value (coefficient of determination). x