Question: The following data were collected on the study of the relationship between a company’s retail sales and Advertising:

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_____

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 $40,000.