6. The following data is taken from a manufacturing company's budget relates to volume of sales...
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6. The following data is taken from a manufacturing company's budget relates to volume of sales and the corresponding expenses. Sales volume ('000 units) 7 8 9 10 Total expenses ($¹000) 82 86 92 95 (a) Obtain the product moment correlation coefficient and comment on the result. 5 6 74 77 (b) Calculate the coefficient of determination and interpret the result. (c) Draw a scatter diagram and comment on the appropriateness of fitting a straight line relationship. By the method of least squares draw the regression line of best fit. (d) What will be the expected total expenses when the volume of sales is 7500 units? (e) If the selling price per unit is $11, at what volume of sales will the total income from sales equal to the total expenses? 6. The following data is taken from a manufacturing company's budget relates to volume of sales and the corresponding expenses. Sales volume ('000 units) 7 8 9 10 Total expenses ($¹000) 82 86 92 95 (a) Obtain the product moment correlation coefficient and comment on the result. 5 6 74 77 (b) Calculate the coefficient of determination and interpret the result. (c) Draw a scatter diagram and comment on the appropriateness of fitting a straight line relationship. By the method of least squares draw the regression line of best fit. (d) What will be the expected total expenses when the volume of sales is 7500 units? (e) If the selling price per unit is $11, at what volume of sales will the total income from sales equal to the total expenses?
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