1. The following chart is data over an 8 month period that shows how much a company spent in advertising and the sales revenue for that month

MONTH	ADVERTISING $	SALES $
March	900	56000
April	2400	89000
May	3100	98000
June	1200	55000
July	3500	96000
Aug	1800	56000
Sept	2000	91000
Oct	1950	78000

a)What is the correlation coefficient? (round to 2 decimals)

b) Is it a positive or negative correlation?

c) Would you say it is a strong correlation, weak correlation or no correlation? What is the indicator that lead you to that conclusion?

d) What is the linear equation (y = mx + b form) that best approximates the relationship between advertising dollars spent(x) and sales revenue(y) based on the above 8 months of data? (round to 2 decimals for the slope and the y intercept)

e) What sales revenue would the company expect for the following advertising spending? Round to nearest cent

a 3000

b 2100

c 1300

f) If you were in charge of the advertising department how much would you spend on each of the next 4 months on advertising and how and why did you arrive at your decision?

Nov

Jan

Feb

March

Please give a short explanation as to how and why you came up with your advertising spending for the above 4 months.

2. You want to buy a $18,500 car. The company is offering a 3% interest rate for 4 years.
   1. What will your monthly payments be? Round to the nearest cent.
3. 2. Assuming you pay that monthly amount for the entire 4 years, what is the total amount of money you will pay during those 4 years for the car?
4. 3. How much interest will you pay during those 4 years?

3. You have $500,000 saved for retirement. Your account earns 7% interest. How much will you be able to pull out each month, if you want to be able to take withdrawals for 30 years?
4. You deposit $500 each month into an account earning 3% interest compounded monthly. a) How much will you have in the account in 13 years?

b) How much total money will you put into the account? c) How much total interest will you earn?

5. Suppose you want to have $900,000 for retirement in 30 years. Your account earns 8% interest. a) How much would you need to deposit in the account each month?

b) How much interest will you earn?

6. You deposit $2100 in a savings account paying 5.5% simple interest. a) How much interest will you earn in 4 years?

b) How much will be in your account at the end of 4 years?