Business application problem:

Shultz, Inc. is a large carpet manufacturing firm. The following data represent Shultz's yearly sales volume and its advertising expenditures over a period of 5 years. Identify the the explanatory and respponse variables.

Advertising Expenditure Sales Volume

Year ($ Millions) ($ Millions)

2005 1.8 26

2006 2.3 31

2007 2.6 28

2008 2.4 30

2009 2.8 34