A sales manager wants to find out the relationship between the amount his shop spends on advertisements and the sales revenue.He took note of his spending on advertisements and sales revenue earned for the past 7 months.

X, Amount spent on Advertisements (S$)

Y, Sales Revenue (S$)

1650

1220

1370

830

1925

1000

2635

1425

3540

1340

1520

795

2620

1710

Table 2.1

1. Determine the correlation coefficient.(4 marks)
2. Determine the regression line.(6 marks)
3. Interpret the regression coefficients.(4 marks)
4. Interpret the correlation coefficient.(2 marks)

1. Estimate the amount of sales revenue if his shop spends $2,000 on advertisements.(3 marks)
2. Estimate the change in amount of sales revenue if his shop spends $500 more on advertisements. (3 marks)