Question: 5 Circulation is the lifeblood of the publishing business. The larger the sales of a magazine, the more it can charge advertisers. Recently, a circulation gap has appeared between the publisher’s reports of magazines newsstand sales and subsequent audits by the Audit Bureau of Circulations. The data in the file circulation.xls represent the reported and audited newsstand sales (in thousands) in 2001 for the following 10 magazines:

a. Construct a scatter plot.

For these data b0 =26.724 and b1 =0.5719

a. Interpret the meaning of the slope, b1 , in this problem.

b. Predict the mean audited newsstand sales for a magazine that reports newsstand sales of 400,000.