A CEO of a large pharmaceutical company would like to determine if the company should be placing
A CEO of a big pharmaceutical firm want to decide if the firm needs to be putting extra money allotted within the finances subsequent yr for tv promoting of a brand new drug marketed for controlling diabetes. He wonders whether or not there's a sturdy relationship between the sum of money spent on tv promoting for this new drug referred to as DIB and the variety of orders acquired. The manufacturing means of this drug could be very troublesome and requires stability so the CEO would want to generate a steady variety of orders. The price of promoting is at all times an vital consideration within the section I roll-out of a brand new drug. Information which were collected over the previous 20 months point out the sum of money spent of tv promoting and the variety of orders acquired.Using linear regression is a essential software for a supervisor's decision-making potential. Please fastidiously learn the instance under and attempt to reply the questions by way of the issue context. The outcomes are as follows:MonthAdvertising CostNumber of Orders1$74,430.002,856,000262,6201,800,000367,5801,299,000453,6801,510,000569,1801,367,000673,1402,611,000785,3703,788,000876,8802,935,000966,9901,955,0001077,2303,634,0001161,3801,598,0001262,7501,867,0001363,2701,899,0001486,1903,245,0001560,0301,934,0001679,2102,761,0001767,7701,625,0001884,5303,778,0001979,7602,979,0002084,6403,814,000a. Arrange a scatter diagram and calculate the related correlation coefficient. Focus on how sturdy you assume the connection is between the sum of money spent on tv promoting and the variety of orders acquired. Please use the Correlation procedures inside Excel below Instruments > Information Evaluation.The Scatterplot can extra simply be generated utilizing the Chart process.NOTE: For those who would not have the Information Evaluation possibility below Instruments you could set up it. You'll want to go to Instruments choose Add-ins after which select the two information toolpak choices. It ought to take a couple of minute.b. Assuming there's a statistically important relationship, use the least squares methodology to search out the regression equation to foretell the promoting prices primarily based on the variety of orders acquired. Please use the regression process inside Excel below Instruments > Information Evaluation to assemble this equation.c. Interpret the that means of the slope, b1, within the regression equation.d. Predict the month-to-month promoting value when the variety of orders is 2,300,000. (Trace: Be very cautious with assigning the dependent variable for this downside)e. Compute the coefficient of dedication, r2, and interpret its that means.f. Compute the usual error of estimate, and interpret its that means.g. Do you assume that the corporate ought to use these outcomes from the regression to base any company selections on? Clarify.