A manufacturer of shirts has traced the relationship between the sales of shirts and the corresponding advertising and promotion. Calculate the linear regression to forecast sales figures if the manufacturer has invested Rs. 53, 00,000 on advertising in 2023. The figures for sales and advertising expenses in the past are given below:

Question:

A manufacturer of shirts has traced the relationship between the sales of shirts and the corresponding advertising and promotion. Calculate the linear regression to forecast sales figures if the manufacturer has invested Rs. 53, 00,000 on advertising in 2023. The figures for sales and advertising expenses in the past are given below:

YearAdvertising Expenses (in lakhs) (X)Sales (in lakhs) (Y)XYX^2Y^2
2019321304160102416,900
2020521517852270422,801
2021501507500250022,500
2022551588690302524964
Total18958928202925387165
Average47.25147.25   

Solution:

Therefore, with an expense of Rs. 53, 00,000 on advertising, the sales figures are estimated to be Rs. 153, 85,000.