# Carpet City wants to develop a means to forecast its carpet sales. The store manager believes that

## Question:

Monthly Carpet ......Monthly Construction

Sales (1,000 yd.) ..... Permits

5 ............ 21

10 ............ 35

4 ............ 10

3 ............ 12

8 ............ 16

2 ............ 9

12 ............ 41

11 ............ 15

9 ............ 18

14 ............ 26

a. Develop a linear regression model for these data and forecast carpet sales if 30 construction permits for new homes are filed.

b. Determine the strength of the causal relationship between monthly sales and new home construction by using correlation.

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## Step by Step Answer:

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