The below data represent the advertising expenditure and sales of Little Liu Ltd from year 2008 to 2017. Table: Advertising Expenditure vs. Sales from 2008 to 2017 Year Advert. Expenditure Sales (x, £000) (y, £000) 2008 8 30 2009 12 40 2010 11 29 2011 5 29 2012 14 43 2013 3 17 2014 6 20 2015 8 30 2016 4 22 2017 9 40 Total 80 300 a). What is the statistical relationship shown in the Figure and list out 3 characteristics of this relationship? b). Work out the values of parameters of the relationship shown in the Figure (i.e. work out the equation of the relationship). c). Explain the relationship and make a recommendation to Little Liu Ltd based on the information given. Figure: Scatter Diagram of Advertising Expenditure and Sales with Trend line - in attachment
Make calculations in excel and explain why did you choose this formula. Put explanations (answers) for each question. Thank you in advance.
The below data represent the advertising expenditure and sales of Little Liu Ltd from year 2008 to 2017.
Table: Advertising Expenditure vs. Sales from 2008 to 2017
|
Year |
Advert. Expenditure |
Sales |
|
(x, £000) |
(y, £000) |
|
|
2008 |
8 |
30 |
|
2009 |
12 |
40 |
|
2010 |
11 |
29 |
|
2011 |
5 |
29 |
|
2012 |
14 |
43 |
|
2013 |
3 |
17 |
|
2014 |
6 |
20 |
|
2015 |
8 |
30 |
|
2016 |
4 |
22 |
|
2017 |
9 |
40 |
|
Total |
80 |
300 |
a). What is the statistical relationship shown in the Figure and list out 3 characteristics of this relationship?
b). Work out the values of parameters of the relationship shown in the Figure (i.e. work out the equation of the relationship).
c). Explain the relationship and make a recommendation to Little Liu Ltd based on the information given.
Figure:
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