The following data were collected on the study of the relationship between a company's retail sales and advertising dollars:
|
Retail Sales ($)
|
Advertising ($)
|
|
31,312
|
16,468
|
|
35,990
|
17,563
|
|
40,659
|
20,780
|
|
43,771
|
23,658
|
|
47,252
|
26,372
|
|
49,353
|
28,012
|
|
51,281
|
32,167
|
|
56,470
|
35,305
|
|
56,655
|
37,199
|
|
59,636
|
38,002
|
a. Obtain a linear regression line for the data.
b. Compute a correlation coefficient and determine the strength of the linear relationship.
c. Using the linear regression equation, develop a forecast of retail sales for advertising dollars of $40,108.