The following chart is data over an 8-month period that shows how much a company spent in advertising and the sales revenue for that month
MONTH
ADVERTISING $
SALES $
March
900
56000
April
2700
89200
May
3150
98500
June
1300
54000
July
3400
97000
Aug
1500
56000
Sept
2300
93000
Oct
2250
79000
What is the correlation coefficient? (round to 2 decimals) describe how you utilized excel to arrive at this number (recommended) or show the formula you utilized to arrive at this answer
Is it a positive or negative correlation?
Would you say it is a strong correlation, weak correlation, or no correlation? What is the indicator that led you to that conclusion?
What is the linear equation (y = mx + b form) that best approximates the relationship between advertising dollars spent(x) and sales revenue(y) based on the above 8 months of data? (round to 2 decimals for the slope and the y intercept) describe how you utilized excel to arrive at this equation (recommended) or show the formula you utilized to arrive at your equation
What sales revenue would the company expect for the following advertising spending? Round to nearest cent show calculation
3000
2100
1300
If you were in charge of the advertising department how much would you spend on each of the next 4 months on advertising and how and why did you arrive at your decision?
Nov
Jan
Feb
March
Please give a brief explanation as to how and why you came up with your advertising spending for the above 4 months.