A store wants to predict net profit as a function of sales for
next year. Historical data for 8 years is given in the table below.
See Attachment
(a) Make a scatter diagram for the data, using Sales for the
independent variable and Net Profit for the dependent variable.
Insert the trend line and add the equation and R2 value to the
diagram.
(b) Determine the correlation coefficient. Comment on the
value of the correlation coefficient.
(c) Find the predicted value of Y given X = 75. Give an
interpretation of the predicted value in the context of the
problem.
(d) Construct an ANOVA table and attach the summary
output.












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