A manager wishes to find out whether there is a relationship between the number of radio ads aired per week and the amount of sales (in thousands of dollars) of a product. The data for the sample are shown below.
Number of ads x 2 5 8 8 10 12
Sales y 2 4 7 6 9 10
a. Draw the scatter plot for the variables.
b. Compute the value of the correlation coefficient.
c. State the hypotheses.
d. Test the significance of the correlation coefficient at a = 0.05.
e. Give a brief explanation of the type of relationship.
f. Find the equation of the regression line.
g. Find y' when x=7 ads.