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Project 8 qr spring 2021 2nd 8 finances 2

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NAME___Abigail Doran______________________
QR PROJECT 8 FINANCES
Must show calculations/formula for credit. Any answer given with no calculations/descriptions
of how arrived at answers shown will result in no credit for that answer. If utilizing excel must
state/describe your formulas used and your inputs
I strongly suggest you use excel for this project. The calculations are accomplished much simpler,
quicker, and more accurate than doing the formulas by hand. The video embedded in your Canvas
course provide a step by step process of how to go about it.
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
2700
89200
May
3150
98500
June
1300
54000
July
3400
97000
Aug
1500
56000
Sept
2300
93000
Oct
2250
79000
a)What is the correlation coefficient? (round to 2 decimals) describe how you utilized excel to arrive
at this number (recommended) or show the formula you utilized to arrive at this answer
Correlation Coefficient is 0.94
b) Is it a positive or negative correlation?
It is positive 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?

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The above correlation is 0.94. This is a strong correlation.
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) describe how you utilized excel to arrive at this
equation (recommended) or show the formula you utilized to arrive at your equation
ý=18.62x38168.23
e) What sales revenue would the company expect for the following advertising spending? Round to
nearest cent show calculation
a) 3000
y = 20.56*3000+32862 = 94542
b) 2100
Y=20.56*2100+32862=76038
c) 1300
Y=20.56*1300+32862=59590
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 - 3100
Jan - 3100
Feb - 3100
March - 3100
Please give a short explanation as to how and why you came up with your advertising spending
for the above 4 months.
I would spend around $3100 per month (Nov, Jan, Feb, March). This is due to the fact

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NAME___Abigail Doran______________________ QR PROJECT 8 FINANCES Must show calculations/formula for credit. Any answer given with no calculations/descriptions of how arrived at answers shown will result in no credit for that answer. If utilizing excel must state/describe your formulas used and your inputs I strongly suggest you use excel for this project. The calculations are accomplished much simpler, quicker, and more accurate than doing the formulas by hand. The video embedded in your Canvas course provide a step by step process of how to go about it. 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 March April May June July Aug Sept Oct ADVERTISING $ 900 2700 3150 1300 3400 1500 2300 2250 SALES $ 56000 89200 98500 54000 97000 56000 93000 79000 a)What is the correlation coefficient? (round to 2 decimals) describe how you utilized excel to arrive at this number (recommended) or show the formula you utilized to arrive at this answer Correlation Coefficient is 0.94 b) Is it a positive or negative correlation? It is positive 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? The above correlation is 0.94. This is a strong correlation. d) What is the linear equation (y = mx + b form) that best approximates the relationship between advertising dollars spent(x) and sales rev ...
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