1. Comment on the correlation coefficient and the coefficient of determination (R2) and explain the difference between what each one tells you about regression. For both include an interpretation in the context of the data.

1. Are there any data points that you think might have an undue influence on the coefficient of determination? Explain briefly.

(b) Interpret the meaning of the slope in this problem. In addition, interpret the intercept and explain if it is meaningful in the context of this problem?

(c) Use the model described in the scatterplot to predict revenue if gift card sales are 7 million. Explain whether this prediction likely to be accurate.

(d) Based on the regression line in the scatterplot, would the model be likely to over- or under-predict the revenue in part (c)? Explain briefly.

Relationship between the sales of gift cards and revenue 90 80 70 Revenue (Millions) 60 50 O 40 30 y = 4.4204x + 6.2339 R3 = 0.8522 20 10 0 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 Gift Card sales (millions)