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Month 1 2 3 4 5 6 7 8 Advertising $1,000 $2,000 $3,000 $20,000 $30,000 $50,000 $80,000 $100,000 Units Sold 4,000,000 4,800,000 5,000,000 7,500,000

The file P14_46.xlsx contains the amount of money spent advertising a product (in thousands) and the number of units sold (in millions) for eight months.

a. Assume that the only factor influencing monthly sales is advertising. Fit the following two cruves to these data: Linear (Y= a + bX) and power (Y= aXb). Which equation best fits the data?

b. Interpret the best fitting equation.

c.Using the best fitting equation, predict sales during the month in which 60,000 is spent on advertising.
Month Advertising Units Sold 1 $1,000 4,000,000 2 $2,000 4,800,000 3 $3,000 5,000,000 4 $20,000 7,500,000 5 $30,000 8,000,000 6 $50,000 9,000,000 7 $80,000 9,900,000 8 $100,000 10,200,000
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8441659.xls

Month
1
2
3
4
5
6
7
8 Advertising
$1,000
$2,000
$3,000
$20,000
$30,000
$50,000
$80,000
$100,000 Units Sold
4,000,000
4,800,000
5,000,000
7,500,000
8,000,000
9,000,000
9,900,000
10,200,000 SUMMARY...

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