Jody Graham is the sales manager for a small company that manufactures and sells widgets. She is conducting a study on sales versus money spent on advertising and has gathered the following data.

SALES ($)	ADVERTISING DOLLARS
1000	90
1300	120
1800	150
1200	100
1380	130

USE EQUATIONS and MANUAL CALCULATIONS to answer the following question.

a) Develop theleast squares estimated regression equation of the study

b) Is the model a good predictor? Explain

c)What is the value of the Product Moment Co-efficient of Correlation? What is the relationship between the variables?

d) Jody Graham has promised the President that if he approves an advertising spend (budget) of $1500, sales can be expected to be in excess of $19,000. Based soley on the regression analysis will this be achieved.

e) The unstated motto of Jody Graham has always been "Under promise and Over achieve" Has she put her motto into practise in f) above

f) Industry intelligence has established that in this market on average for every dollar spent on advertising, sale can be expected to increase by $9. Based soley on this regression analysis, is Jody Graham underperforming or over performing. Explain