Please solve this problem below and show every step.

1. Baby It's You, a maker of baby foods, has found a high correlation between the aggregate company sales (in $100,000) and the number of births nationally the preceding year. Suppose that the sales and the birth gures during the past eight years are Year | 11123415161718| Sales(in $100000) 1 6.1 l 6.4 8.3 8.8 l 5.1 l 9.2 l 7.3 1 12.5 us births(in millions) l 2.9 l 3.4 3.5 3.2 l 3.8 l 2.8 l 4.2 l 3.7 a) (30 points) Determine a regression equation for predicting sales based on births. Use years 2 through 8 as your baseline. b) (10 points) Suppose that births are forecasted to be 3.3 million in year 9. What forecast for sales revenue in year 10 do you obtain using the results of part (a)? 2. (30 point). A manager must make a decision on shipping. There are two shippers, A and B. Both offer a two-day rate: A for $500 and B for $525. In addition, A offers a threeday rate of $455 and a nineday rate of $400, and B offers a fourday rate of $445 and a seven-day rate of $410. Annual holding costs are 35 percent of the unit price. Three hundred boxes are to be shipped, and each box has a price of $140. Which shipping alternative would you recommend? Explain