Question

A retail outlet observed that fewer customers came into the store during days that the temperature outside was cold. To determine a relationship that might exist between temperature and customers, she gathered the following data. She felt that if she knew this relationship, she could determine the sales staff needed based on the weather.

Average daily outside temperature	Number of customers that day
5	10
7	15
6	17
12	19
25	30
32	30
45	36
50	45
65	50
80	65

4. Interpret the linear relationship you found.
5. Find R square and interpret.
6. Find r and interpret.

Note: On this problem you can only do the regression.

Answer 1

The scatter plot for the data given is shown below

1) From the scatter plot it is clear that with the increase in values of x ( i.e Average daily outside temperature) there is a gradual increase in variable y ( i.e Number of customers that day)

Hence, there is a Positive correlation between Average daily outside temperature and Number of customers that day

2) The So 97.64% variation in variable y ( i.e Number of customers that day) is expalined by x ( i.e Average daily outside temperature)

3) So the two variables are highly correlated with each other