Question

Use the following data to answer Questions 17-18. It shows temperature recorded on various days of the year (independent variable) and number of patrons at The Ice Cream Shop (dependent variable).

Temp (X)	Patrons (Y)
85	25
75	20
16	14
61	18
42	13

1. What is the correlation coefficient between temperature and Ice Cream Shop patrons?
   1. 0.96
   2. 0.78
   3. 0.88
   4. 0.42

2. What is the regression equation which uses temperature to predict patrons?

1. Y = 0.16X + 9.30
2. Y =9.30X + 0.16
3. Y = 10.6 – 2.5X
4. Y = 2.3X + 16.4

3. The marketing manager conduct a regression analysis between discounts (X) and sales (Y). The equation is: Y = 123 - 12.5X. Values for X that were used to develop the equation ranged from 5% discounts to 50% discounts. Assume the marketing manager wants to estimate sales for discounts of X = 45%. What would you tell the marketing manager?
   1. Y = 103.48
   2. Y = 117.38
   3. It would be inappropriate to estimate Y because the slope is negative
   4. It would be inappropriate to estimate Y because the regression equation was developed using discounts of 5% to 50%.

Answer 1