BIS 155 Course Great Wisdom / tutorialrank.com BIS 155 Course Great Wisdom / tutorialrank.com | Page 50

You will most likely find this information very interesting. Some find
it strange that the average age of death of the first five and the last
five presidents was less than a year different, especially given all the
advances in medicine.
STEP 9: Regression Analysis
Scenario: The owner of the Original Greek Diner has been advertising
for the past year, and is now ready to renew his contract. He needs
to know if the advertising has been effective, so your task is to take
the prior year's data and perform a regression analysis to determine
the correlation between advertising expenditures and restaurant
sales (revenues).
Using the GreekData sheet, prepare a scatter plot graph with a title
of Revenues (Y), placed to the right of the data on the same sheet.
The data must be presentable, so you might want to use an
increment of $500 for the X axis. After creating the graph, which
should include the Equation and R-squared values, create a trend
line. You should notice that there appears to be a close relationship
between advertising spending and revenues.

Your next task is to create the regression data on a separate sheet,
labeled Greek Regression. As a reminder, regression analysis is
located on the Data -> Data Analysis menu. Be sure to highlight the
R-squared value in red, the Intercept value in blue, and the X variable
1 in green.
Based on this data, and what you have learned about regression thus
far, what do you think the owner should do?