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The level of advertising expenditure in the financial services sector (i.e. banks, insurance, investments) to promote products and services has steadily increased in recent years. The annual expenditure levels (in R10 millions) for the financial services sector from 2005 to 2011 are shown in the following table.
Year
2005
2006
2007
2008
2009
2010
2011
Expenditure
9.6
11.8
12.0
13.6
14.1
15.0
17.8
(a) Use the least squares regression to calculate the trendline equation for advertising expenditure in the financial services sector.
(b) Predict the level of advertising expenditure for the sector for 2012.
(c) Use Excel to plot a line graph of advertising expenditure in the financial services sector from 2005 to 2011.
(d) Use the Add Trendline option in Excel to compute the trendline equation for annual advertising expenditure levels in the financial services sector.
(e) Use Excel's Trendline equation to estimate advertising expenditure levels from 2005 to 2011 and show these estimates on the same graph as the plot of the original series in (c).
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