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The following data were collected on the study of the relationship between a company's retail sales and advertising dollars:
Retail Sales ($) Advertising ($)
31,457 16,136
37,031 17,809
40,543 19,848
43,375 23,770
47,594 25,075
51,160 27,911
52,807 32,947
55,796 34,906
57,885 35,367
59,416 38,880
a. Obtain a linear regression line for the data. (Round your answer to 2 decimal places, the tolerance is +/-0.01.)
b. Compute a correlation coefficient and determine the strength of the linear relationship. (Round your answer to 2 decimal places, the tolerance is +/-0.01.)
c. Using the linear regression equation, develop a forecast of retail sales for advertising dollars of $42,626. (Round your answer to 2 decimal places, the tolerance is +/-0.01. Do not round intermediate results used to achieve this answer.)
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