Lawson Advertising Agency is trying to persuade Kansas City Sailboards Company to spend more on advertising. The agencys argument is that a constant and strong positive relationship exists between advertising and sales in the sailboard industry. Sue Lawson presents these data taken from industry data for stores similar in size and market share to Kansas City Sailboards:

Advertising Expense			Annual Sales
$	2,500		$	96,000
	3,000			110,000
	3,500			124,000
	4,000			138,000
	4,500			143,000
	5,000			147,000
	5,500			150,000

Required:

1. Use the high-low method to estimate the relationship between increased advertising and sales.

2. Graph annual sales and advertising expense. (Use the line tool to draw the annual sales and advertising expense. To earn full credit for this graph you must plot all required points for each curve. While plotting the points a tool icon will pop up. You can use this to enter exact co-ordinates for your points as needed.)