Question

The sales of a company (in million dollars) for each year are shown in the table below. Is there evidence
of a linear relationship between the two variables, and are they positively correlated?

a. Assign variables and sketch the scatter gram (2)
b. State the Null and Alternative Hypotheses as if a complete hypothesis test had been conducted. (2)
c. Find the linear correlation coefficient. (1)
d. At what level is there evidence of linear correlation? (2)
e. State the least squares equation and sketch it on the scatter gram. (2)
f. Estimate the income in the year 2021 (1)
x (years since 2010) 5 6 7 8 9
y (sales in millions) 11 18 26 34 41

Answer 1

a)

scatter plot