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    Develop an equation to determine the correlation coefficient from a given data set.

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    Use linear regression to develop a predictive model for demand for ironing board covers based on sales of irons.

    Year--------Sales of Irons (000)----Demand for Covers (000)
    1---------------8-------------------------------5
    2---------------7-------------------------------2
    3--------------- 10------------------------------- 6
    4--------------- 6------------------------------- 4

    A) Develop the equation.
    B) What is the coefficient of correlation for this data?

    © BrainMass Inc. brainmass.com June 3, 2020, 4:54 pm ad1c9bdddf
    https://brainmass.com/business/business-management/develop-equation-determine-correlation-coefficient-7492

    Solution Preview

    Please view the attachment below for a detailed solution.

    The equation is: Demand for Covers = 0.554*Sales of Irons

    The two are correlated by 0.714

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    Here is the output from excel. Assume that demand for covers will ...

    Solution Summary

    The expert develops an equation to determine the correlation coefficient. The solution presents a full explanation with calculations for the answer.

    $2.19

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