A business analyst was interested in the relationship between a company€™s sales and its profits. She collected data (in millions of dollars) from a random sample of Fortune 500 companies and created the regression analysis and summary statistics shown. The assumptions for regression inference appeared to be satisfied.

a) Is there a statistically significant association between sales and profits? Test an appropriate hypothesis and state your conclusion in context.
b) Do you think that a company€™s sales serve as a useful predictor of its profits? Use the values of both R2 and s in your explanation.

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Profits Sales Dependent variable s Profits R-squared-66.2% s-466.2 79 Count 79 Mean209.839 4178.29 Variable Coefficient SE(Coeff) Variance 635.172 49,163.000 Intercept176.644 61.16 Std Dev 796.977 7011.63 Sales 0.092498 0.0075