7.16 The annual turnovers (in £000m) and numbers of employees

(in 000s) of 12 major retail companies are:

Turnover: 20.1 14.0 10.7 10.6 8.6 8.1 5.5 4.9 4.6 4.5 4.3 4.1 Employees: 126 141 107 101 92 70 52 34 57 32 47 26

(a) Which variable should be the independent (X) variable?

(b) Portray these data in the form of a scatter diagram.

(c) Find the equation of the line of best fit and plot the line on your scatter diagram.

(d) Work out the coefficient of determination and outline what it tells you about the relationship between the two variables.