1. The following data relate to the sales of a product over an eight-month period:

Table : Sales and Prices Months

MonthsJanFebMarAprMayJunJulAug

Sales (units)5472706567756667

Price ($)7565596969495959

QUESTION 1

Investigate whether sales are affected more by the level of price or by the change in price of the product.

QUESTION 2

Interpret the regression coefficient of the explanatory variable .

QUESTION3

Draw an appropriate graph of the data and relationship .

QUESTION 4

Forecast sales in September if price is $61 .