Must show calculations/formula for credit. Any answer given with no calculations/descriptions of how arrived at answers shown will result in no credit for that answer. If utilizing excel must state/describe your formulas used and your inputs
I strongly suggest you use excel for this project. The calculations are accomplished much simpler, quicker, and more accurate than doing the formulas by hand. The video embedded in your Canvas course provide a step-by-step process of how to go about it.
1. 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
a)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
b) Is it a positive or negative correlation?
c. Would you say it is a strong correlation, weak correlation or no correlation? What is the indicator that lead you to that conclusion?
d. 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 (recommende or show the formula you utilized to arrive at your equation
e. What sales revenue would the company expect for the following advertising spending? Round to nearest cent show calculation
a. 3000
b. 2100
c. 1300
f. 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 short explanation as to how and why you came up with your advertising spending for the above 4 months.
