Question

Bi-lo Appliance Stores has outlets in several large metropolitan areas in New England. The general sales manager plans to air a commercial for a digital camera on selected local TV stations prior to a sale starting on Saturday and ending Sunday. She plans to get the information for Saturday-Sunday digital camera sales at the various outlets and pair them with the number of times the advertisement was shown on the local TV stations. The purpose is to find whether there is any relationship between the number of times the advertisement was aired and digital camera sales. The pairings are as follows:

Location of   TV Station	Number of Airings	($ thousands)
Providence	4	13
Springfield	5	16
New Haven	2	11
Boston	6	11
Hartford	8	8

a. Determine the correlation coefficient. (Round the final answer to 4 decimal places.)

Coefficient of correlation __________   

b. Determine the coefficient of determination. (Round the final answer to 3 decimal places.)

Coefficient of determination ____________

        

c. Interpret these statistical measures. (Round the final answer to 1 decimal place.)

(Click to select) 1. The correlation coefficient indicates a very moderate negative correlation. 2. The correlation coefficient indicates a very strong negative correlation. 3. The correlation coefficient indicates no relationship between X and Y.  

The coefficient of determination indicates X accounts for about    percent of the variation in Y.

Answer 1

The statistical software output for this problem is:

Hence,

a) Coefficient of correlation = -0.4170

b) Coefficient of determination = 0.174

c) The correlation coefficient indicates a very moderate negative correlation.

The coefficient of determination indicates X accounts for about 17.4 percent of the variation in Y.