The following data represent x = boat sales and y = boat trailer sales from 1995 through 2000.0
Year Boat sales (thousands) Boat trailer sales (thousands)
1995 649 207
1996 619 194
1997 596 181
1998 576 174
1999 585 168
2000 574 159
a. determine that least-squares regression line and interpret its slope
b. estimate, for a year during which 500,000 boats are sold, the number of boat trailers that would be sold
c. what reasons might explain why the number of boat trailers sold per year is less than the number of boats sold per year?
Please see attached file for explanation.
Let y denote the boat trailer sales and x denote the boat sales. Assume that x and y are linearly related. Let be the suggested linear relationship.
By the method of least squares the estimates of and are given by,
Boat sales x Boat trailer sales ...
The solution contains the fitting of a least squares regression line and prediction.