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Regression Analysis

Tem Rousos, president of Rousos Ford, believes there is a relationship between the number of new cars sold and the number of sales people on duty. To investigate he selects a sample of eight weeks and determines the number of new cars sold and the number of sales people on duty for that week.

Week Sales staff Cars sold
1 5 53
2 5 47
3 7 48
4 4 50
5 10 58
6 12 62
7 3 45
8 11 60

a. Plot these data in a scatter diagram.
b. Determine the coefficient of correlation.
c. Determine the coefficient of determination. Comment on the strength of the association between the two variables.

Solution Preview

Week Sales staff Cars sold
1 5 53
2 5 47
3 7 48
4 4 50
5 10 58
6 12 62
7 3 45
8 11 60

a. Plot these data in a scatter diagram. ...

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