Question: Exercise E4-7 - Scattergraph Reef Office Supplies is interested in estimating the relationship between customer service costs and sales. The following data are available: Month
| Exercise E4-7 - Scattergraph | ||||||
| Reef Office Supplies is interested in estimating the relationship between customer service costs and sales. The following data are available: | ||||||
| Month | Customer Service Cost | Sales | ||||
| May | $9,740 | $170,000 | ||||
| June | $10,100 | $210,000 | ||||
| July | $10,690 | $230,000 | ||||
| August | $12,750 | $255,000 | ||||
| September | $13,830 | $275,000 | ||||
| Required | ||||||
| a. Prepare a scattergraph of customer service cost (vertical axis) and sales (horizontal axis). b. Comment on whether there appears to be a linear relation between cost and sales and whether any of the observations appear to be outliers. |
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