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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)
3--------------- 10------------------------------- 6
4--------------- 6------------------------------- 4

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

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

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

The two are correlated by 0.714

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

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