QUESTION 1

1. Mr. Ali runs a gift shop in the Defense area, Karachi. He advertises weekly in the local newspapers and is considering increasing his advertising budget. Before doing so, he decides to evaluate the past effectiveness of these advertisements. Five weeks are sampled, and the advertising expenses (in PKR) and sales volume for each is shown in the table given below:
2. Sales (PKR 100k)
3. 6
4. 8
5. 6
6. 10
7. 6
8. Advertising (PKR 100k)
9. 4.1
10. 6.72
11. 5.05
12. 7.26
13. 2.69
15. Calculate coefficient of correlation and in the light of the value of coefficient of correlation which statement is true. (write only number of correct option in answer box)
16. There is a strong direct relationship between the two study variables
17. There is a strong inverse relationship between the two study variables
18. There is a Weak direct relationship between the two study variables
19. There is a Weak inverse relationship between the two study variables