Basic Statistics - Old Questions

2. A big computer supplier in Kathmandu used to sell large number of computers in each year. His interest is to increase his sales volume in each year for which the supplier has started to take the help of advertisement and allocated some advertisement expenditure in his annual budget each year. The supplier wants to quantify the effect of advertise expenditure on sales of computers. The advertisement expenditure (in lakhs rupees) and their corresponding sales from the computers (in crores rupees) is tabulated as follows.

Assuming that the relationship between the advertisement expenditure and sales is linear. Response the following questions.

a) Perform appropriate statistical analysis and quantify the effect of advertisement on sales obtained from the computer selling. Also interpret the results.

b) Estimate the sales corresponding to advertising expenditure of Rs. 45 lakhs.