A local tire dealer wants to predict the number of tires sold each month. He believes that the number of tires sold is a linear function of the amount of money invested in advertising. He randomly selects 6 months of data consisting of tire sales (in thousands of tires) and advertising expenditures (in thousands of dollars). Based on the data set with 6 observations, the simple linear regression model yielded the following results.
∑X =24
∑X2=124
∑Y = 42
∑Y2 =338
∑XY =196
Calculate the coefficient of determination and the coefficient of correlation between X and Y. Interpret the coefficient of Determination. also find the slope and intercept and write the estimated Regression equation. What would the predicted sales of tires be if he spends five thousand dollars in advertising?