3. A publisher collects information about the amount spent on advertising, \(\pounds x\), and the sales, \(y\) books, for some of her publications. She collects information for a random sample of 8 textbooks and codes the data using \(v = \frac { x + 50 } { 200 }\) and \(s = \frac { y } { 1000 }\) to give
| \(v\) | 0.60 | 8.10 | 4.30 | 0.40 | 1.60 | 6.40 | 2.50 | 5.10 |
| \(s\) | 1.84 | 6.73 | 5.95 | 1.30 | 2.45 | 7.46 | 4.82 | 6.25 |
[You may use: \(\sum v = 29 \sum s = 36.8 \sum s ^ { 2 } = 209.72 \sum v s = 177.311 \quad \mathrm {~S} _ { v v } = 55.275\) ]
- Find \(\mathrm { S } _ { v s }\) and \(\mathrm { S } _ { s s }\)
- Calculate the product moment correlation coefficient for these data.
The publisher believes that a linear regression model may be appropriate to describe these data.
- State, giving a reason, whether or not your answer to part (b) supports the publisher's belief.
- Find the equation of the regression line of \(s\) on \(v\), giving your answer in the form \(s = a + b v\)
- Hence find the equation of the regression line of \(y\) on \(x\) for the sample of textbooks, giving your answer in the form \(y = c + d x\)
The publisher calculated the regression line for a sample of novels and obtained the equation
$$y = 3100 + 1.2 x$$
She wants to increase the sales of books by spending more money on advertising.
- State, giving your reasons, whether the publisher should spend more money on advertising textbooks or novels.