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Question: Sales and profits. A business analyst was interested in the relationship between a company's sales and its profits. She collected data (in millions of dollars) from a random sample of Fortune 500 companies and created the regression analysis and summary statistics shown. The assumptions for regression inference appeared to be satisfied.
a) Is there a significant association between sales and profits? Test an appropriate hypothesis and state your conclusion in context.
b) Do you think that a company's sales serve as a useful predictor of its profits? Use the values of both R2 and s in your explanation.
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