Question 1: Formonix Limited provides financial services to corporate clients in Birmingham. The company is planning to investigate whether there is a relationship between the amount of money spent on staff training and sales revenue. The following figures were collected over 8 months in 2021 from money spent and sales revenue: Money spent on training Sales 000's 000's 119 130 131 145 50 95 145 100 Required: a) Using the above data and appropriate formulas, estimate and interpret a and coefficients. (10 marks) b) Suppose we have the following regression equation: Sales 400-52(Price) + 16(Holiday) where: Sales is the number of pies sold per week Price is pie price in pounds Holiday is equal to 1 if a holiday occurred during the week or equal to 0 if no holiday occurred during the week Estimate sales if the price is 3 and there is no holiday during the week. (5 marks) c) If there is a holiday during the week, what would the price be to give predicted sales of 338 pies for that week? (5 marks) 467181113 23 14 Question 1: Formonix Limited provides financial services to corporate clients in Birmingham. The company is planning to investigate whether there is a relationship between the amount of money spent on staff training and sales revenue. The following figures were collected over 8 months in 2021 from money spent and sales revenue: Money spent on training Sales 000's 000's 119 130 131 145 50 95 145 100 Required: a) Using the above data and appropriate formulas, estimate and interpret a and coefficients. (10 marks) b) Suppose we have the following regression equation: Sales 400-52(Price) + 16(Holiday) where: Sales is the number of pies sold per week Price is pie price in pounds Holiday is equal to 1 if a holiday occurred during the week or equal to 0 if no holiday occurred during the week Estimate sales if the price is 3 and there is no holiday during the week. (5 marks) c) If there is a holiday during the week, what would the price be to give predicted sales of 338 pies for that week? (5 marks) 467181113 23 14