Correlation and Simple Regression. May Brothers Department Store has conducted a survey to learn the buying intentions of a sample of 62 department store customers. The survey asked each customer their household gross income (in $ thousands), and their number of shopping trips per year.
A. Interpret the coefficient of correlation between the TRIPS and INCOME variables of 0.8.
B. Interpret the following results for a simple regression over this sample where TRIPS is the dependent Y variable and INCOME is the independent X-variable: The regression equation is: TRIPs = 0.5 + 0.1 INCOME Predictor Coef Stdev t ratio Constant 0.48 0.30 1.6 INCOME 0.10 0.05 2.0 SEE = 0.3 R2 = 64% R2 = 63.4% F statistic = 106.7