Math Problem Statement

The marketing division of an electronics company is analyzing the relationship between the amount they spent advertising a product and the number of units of the product sold. They analyzed monthly data from the past six months. The data they analyzed are shown below.

Advertising Expense (thousands of dollars) Units of Product Sold 5.2 20,000 6.1 22,500 6.4 23,200 7.1 25,600 9.4 28,100 10.2 29,000

Select all the statements that correctly interpret the value of the correlation coefficient for these data. A. As the amount spent on advertising a product increases, the number of units of the product sold also increases. B.There is a positive association between the amount spent on advertising and the number of units of the product sold. C.There is a negative association between the amount spent on advertising and the number of units of the product sold. D.A linear model can be used to represent the relationship between the amount spent on advertising and the number of units of the product sold. E.The slope of a line that models the relationship between the amount spent on advertising and the number of units of the product sold is 0.97.

Solution

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Math Problem Analysis

Mathematical Concepts

Correlation
Linear Models
Statistics

Formulas

Correlation coefficient formula: r = Σ((x_i - x̄)(y_i - ȳ)) / √(Σ(x_i - x̄)² * Σ(y_i - ȳ)²)
Linear equation: y = mx + b

Theorems

Pearson's Correlation Theorem
Linear Regression

Suitable Grade Level

Grades 10-12