Question: Suppose you have collected the following sample data from twenty-six randomly selected Dallas area families regarding their Weekly Expenditures on Video Rentals and Weekly Expenditures

Suppose you have collected the following sample data from twenty-six randomly selected Dallas area families regarding their Weekly Expenditures on Video Rentals and Weekly Expenditures on Dining Out:

Observation Number Weekly Expenditures
Video Rentals Dining Out
1 $12 $28
2 $12 $27
3 $6 $32
4 $13 $32
5 $7 $25
6 $10 $24
7 $8 $27
8 $4 $20
9 $4 $32
10 $13 $35
11 $5 $30
12 $9 $22
13 $12 $31
14 $9 $25
15 $12 $28
16 $4 $34
17 $14 $36
18 $10 $24
19 $5 $29
20 $18 $42
21 $15 $41
22 $6 $26
23 $6 $28
24 $4 $40
25 $11 $21
26 $9 $24

Explain your answers below in detail (use analytical tools such as correlation and regression when necessary)

Q1: What is the relationship between weekly expenditures of video rentals and dining out?

This is what I have so far: The correlation coefficient between dining out and video rentals is 0.32. Since it is a positive number, it indicates a positive relationship between the variables which means when one variable increases, the other variable likely increases as well. The strength of the relationship is weak because the correlation coefficient is closer to 0 than to 1.

I did a scatter plot and it shows it is a non-linear correlation. So, what other analysis should I do find out the relationship between the two?

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