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Unit 2: Statistical Decision Theory

20257m

A company wants to predict the sales (y) of a product based on its advertising expenditure (x).
The observed data for 5 months is:

x (Advertising) y (Sales)
1 3
2 4
3 2
4 5
5 7

Calculate the regression coefficients for the linear regression model:

y=w0+w1xy = w_0 + w_1 x

Then, predict the value of y when x = 6.

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