Based on the given table, the linear regression equation is

?y=0.0301x+0.3436y^=0.0301x+0.3436 and R2=0.5668R2=0.5668 .

(a) Find the coefficient of linear correlation. Please round the answer to two decimal places.

r=r=

(b) Is the association between the above factors positive or negative? Select an answer Positive Negative

(c) What would be the best predicted sales for a town with the population of 5400054000? Please round the answer to two decimal places. Hint: Use the regression equation to answer the question.

?y=y^= in $$millions

(d) If we use the same regression model to predict the annual sales for a store in a city with the population of 500000500000 , would this forecast be reliable?

• We cannot use the same regression model, as the population of the city does not fall within the sample xx-range.
• If we use the same regression model, the forecast will still be reliable.

A regional highend specialty supermarket is considering opening a new store and is curious about the relationship between demographic data and the store sales in the existing stores. For example, are store sales related to the population in the town where the store is located? Data for 9 stores in 2018 is presented below. Population is given in thousands and annual sales in $ millions. Population 29 43 67 61 17 35 55 33 40 2018 Sales 0.86 1.18 2.20 1.90 0.97 1.95 2.81 1.21 1.45 3 O 2 .5 O ,E 2 a :2 O E 15 0 O I Q . .5 49.5 Population