Chapter 3:

1. A Technology-Driven company wants to determine whether there is a relationship between the customers order size during the sale season and returns. The company assembles the following data for the last six sales.

O.S*	45	37	32	29	57	46
Returns	3	5	1	6	8	3

*O.S= Orders size

For the table shown please:

1. What assumption is the management of this company making? Is this assumption reasonable?

2. Compute the correlation coefficient.

3. Use a power regression to find a curve of the best fit for the data.

4. Predict the number of returns for a (40) order size.

2. What are the disadvantages of using a correlation coefficient to estimate the strength of a linear correlation? Describe them, please.