(a) Create a scatter diagram showing the relationship between online

advertising expenditure and online sales. Ensure your scatter

diagram is suitably labelled and clearly shows the straight line of

best fit and its equation.

(b) State the Pearson's Product Moment Coefficient of Correlation for

the data.

(c) Use the regression line to estimate the value of online sales for a

company spending £45,000 per month on online advertising.

(d) Calculate the advertising expenditure required to meet a revenue

target of £800,000.

(e) With reference to Pearson's Product Moment Coefficient of

Correlation, comment on the validity of your forecast made in parts

(c) and (d) above.