Respond to the following in a minimum of 175 words:Models help us describe and summarize relationships between variables. Understanding how process variables relate to each other helps businesses predict and improve performance. For example, a marketing manager might be interested in modeling the relationship between advertisement expenditures and sales revenues.Consider the dataset below and respond to the questions that follow:Advertisement ($’000) Sales ($’000)1068 44891026 5611767 3290885 41131156 48831146 5425892 4414938 5506769 3346677 36731184 65421009 5088Construct a scatter plot with this data.Do you observe a relationship between both variables?Use Excel to fit a linear regression line to the data. What is the fitted regression model? (Hint: You can follow the steps outlined in Fitting a Regression on a Scatter Plot on page 497 of the textbook.)What is the slope? What does the slope tell us?Is the slope significant?What is the intercept? Is it meaningful?What is the value of the regression coefficient,r? What is the value of the coefficient of determination, r^2? What does r^2 tell us?Use the model to predict sales and the business spends $950,000 in advertisement. Does the model underestimate or overestimates ales?
