Question: $uper Markets, Inc. is considering expanding into the Scottsdale, Arizona, area. Ms. Luann Miller, Director of Planning, must present an analysis of the proposed expansion to the operating committee of the board of directors. As a part of her proposal, she needs to include information on the amount people in the region spend per month for grocery items. She would also like to include information on the relationship between the amount spent for grocery items and income. She gathered the following sample information.

a. Let the amount spent be the dependent variable and monthly income the independent variable.

Create a scatter diagram, using a software package.

b. Determine the regression equation. Interpret the slope value.

c. Determine the coefficient of correlation. Can you conclude that it is greater than 0?