A company makes high quality paper for use in the printing of glossy corporate reports. Its monthly sales in three Canadian provinces over the past year are:
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Next year, the company will give an additional marketing budget to the province that has shown a consistent increase in sales over the past year. The amount in $m will be calculated as the increase of sales per month multiplied by 0.5.
a) Check the conditions for using a linear model for each of the three provinces.
b) Specify a linear model wherever appropriate.
c) In what way does your model determine a “consistent increase in sales”? How much of the variability in the data does your model explain?
d) To which province should the additional marketing budget be awarded and how much should it be?