Case Study on Linear Least Squares
Problem Statement
A retail company wants to study the relationship between:
- Advertising Cost (X)
and - Sales Revenue (Y)
The management believes that increasing advertising expenses increases sales.
The company collects monthly data to build a predictive model.
Collected Data
| Month | Advertising Cost X (᩹1000) | Sales Revenue Y (᩹1000) |
|---|---|---|
| 1 | 1 | 2 |
| 2 | 2 | 4 |
| 3 | 3 | 5 |
| 4 | 4 | 4 |
| 5 | 5 | 5 |