Advertisement and sales are two important elements which are vital for the growth of an organization. Lakamuun incorporated is a company that specializes in the production of chromocratic papers. The weekly expenditure on adverts ( ) and the weekly sales ( ) are presented in the table below.

Weekly sales (GH¢)	Weekly adverts (GH¢)
5000	350
6000	413
3500	230
8000	631
4500	285
6000	321
7000	431
8500	461
8100	313
8100	303

Required

(a) Compute

i. Covariance

ii. Coefficient of correlation

iii. Interpret your findings

(b) Estimate the least square line using least square method

(c) Using the regression line above estimate the following

(i) Weekly sales if an expenditure of GH¢2150 is spent on adverts.

(ii) How much should be spent on adverts if GH¢64500 was generated as sales.

(d) Base on the above estimations in C above, what recommendations would you make to Lakamuun Inc.

Answer rating: 100% (QA)

overestimations in C above the recommendation to Lakamuun Inc is to increase their expenditure on adverts in order to increase their weekly sales It s... View the full answer