Question4

The below data represent the advertising expenditure and sales of Liu Liu Ltd fromyear2010to 2019.

Table:AdvertisingExpenditure vs.Sales from 2010to2019

Year	Advert. Expenditure	Sales	Growth rate ofAd. Expenditure	Growth rateofSales
	(x,000)	(y,000)
2010	19	84
2011	22	108	18%	29%
2012	32	82	46%	-24%
2013	42	86	32%	6%
2014	47	84	11%	-3%
2015	46	94	-2%	11%
2016	58	103	27%	10%
2017	63	115	8%	12%
2018	70	106	11%	-8%
2019	80	142	15%	34%
Total	478	1003

a. What is the statistical relationship shown in the table and list out 3 characteristics ofthis relationship?

b. Work out and explain the values of parameters of the relationship described in thetable (i.e. work out the equation of the relationship and coefficient ofdetermination)and show the relationship in a chart.

c. How much is the average of growth rate of Ad. Expenditure and growth rate of sales,respectively?Show your workings andexplain your choice of meanused.

d. Explain the relationship and make recommendation to Liu Liu Ltd based on theinformationgiven.