1. **Problem Statement:** We want to estimate the expected sales next year based on the maximum advertising expenditures on TV, Radio, and Newspapers, using the given correlation coefficients. 2. **Given Data:** - Maximum advertising spends (in thousands): TV = 296.40, Radio = 4,652.80, Newspapers = 114.00 - Correlation coefficients with sales: TV = 0.901, Radio = 0.350, Newspapers = 0.158 - Sales data: sum = 3,026.10 (thousands), standard deviation = 5.28389 3. **Approach:** Since TV advertising has the highest correlation with sales, it is the most efficient way to increase sales. The Marketing Department wants to use the maximum amount possible in the most efficient way. 4. **Estimate sales based on TV advertising:** We use the linear relationship implied by the correlation coefficient $r$ and standard deviations: $$\text{Estimated Sales} = r \times \frac{\sigma_{Sales}}{\sigma_{TV}} \times (\text{Max TV spend} - \bar{TV}) + \bar{Sales}$$ 5. **Calculate means:** $$\bar{TV} = \frac{29,408.50}{200} = 147.0425$$ $$\bar{Sales} = \frac{3,026.10}{200} = 15.1305$$ 6. **Calculate the slope:** $$m = r \times \frac{\sigma_{Sales}}{\sigma_{TV}} = 0.901 \times \frac{5.28389}{85.85424} = 0.0555$$ 7. **Calculate the increase in TV spend:** $$\Delta TV = 296.40 - 147.0425 = 149.3575$$ 8. **Calculate estimated increase in sales:** $$\Delta Sales = m \times \Delta TV = 0.0555 \times 149.3575 = 8.29$$ 9. **Calculate estimated sales:** $$\text{Estimated Sales} = \bar{Sales} + \Delta Sales = 15.1305 + 8.29 = 23.42$$ 10. **Convert to euros (thousands to euros):** $$23.42 \times 1000 = 23,420$$ 11. **Conclusion:** The closest option to 23,420 euros is D. 23,427 euros. **Final answer:** D. 23,427 euros