Question: Question 24

The table below shows the amount of expenditures and the amount of sales for a company for several years.

i. Calculate the Product-moment correlation coefficient between the expenditures and the sales, and comment on the result obtained.

Calculate the least square regression line of sales on expenditures

ii. Forecast the sales for when the advertising expenditures are $60,000.

iii. Would you consider your forecast result in (iii) accurate? Explain your reasoning.