The following data were collected on the study of the relationship between a company's retail sales and
Question:
The following data were collected on the study of the relationship between a company's retail sales and advertising dollars:
Retail Sales ($).......Advertising ($)
31,285............................15,899
35,486............................17,981
40,626............................20,387
44,312............................23,073
46,578............................25,591
51,020............................26,582
54,063............................31,440
57,156............................35,963
57,645............................35,950
59,505............................37,442
Obtain a linear regression line for the data. (Round your answer to 2 decimal places, the tolerance is +/-0.01.)
Retail Sales = ____________ + ______________ (advertising)
Compute a correlation coefficient and determine the strength of the linear relationship. (Round your answer to 2 decimal places, the tolerance is +/-0.01.)
Correlation coefficient is ______________ . It indicates a moderate, positive or no or a strong, postive linear relationship. (Use not rounded amounts to answer this question.)
Using the linear regression equation, develop a forecast of retail sales for advertising dollars of $41,356. (Round your answer to 2 decimal places, the tolerance is +/-0.01. Do not round intermediate results used to achieve this answer.) Forecast = $___________
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