Problem:
The following data were collected on the study of the relationship between a company’s retail sales and advertising dollars:
Retail Sales ($) Advertising ($)
29,789 16,893
35,434 18,398
38,732 20,376
43,585 22,982
46,821 25,732
49,283 27,281
52,271 32,182
55,289 35,298
57,298 36,281
58,293 38,178
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 strong, postivea moderate, positiveno 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 $40,946. (Round your answer to 2 decimal places, the tolerance is +/-0.01. Do not round intermediate results used to achieve this answer.)
Forecast = $