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An advertising firm wishes to demonstrate to its clients the effectiveness of the advertising campaigns it has conducted. The following bivariate data on twelve recent campaigns, including the cost of each campaign (in millions of dollars) and the resulting percentage increase in sales following the campaign, were presented by the firm. Based on these data, we would compute the y ^ = 6.25 + 0.16 x , with x representing campaign cost and y representing the resulting percentage increase in sales. (This line is shown below, along with a data.) Based on the firm's data and the regression line, answer the following. (a) From the regression equation, what is the predicted percentage increase in sales when the advertising campaign cost is 2.01 million dollars? Round your answer to two or more decimal places. (b) What was the observed percentage increase in sales when the advertising campaign cost was 2.01 million dollars? .

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