Question

Over a period of three years. Ndiyo sells fish at Six different prices (x pound per Kilograms). The sales manager calculates the average number of kilograms, y, Sold per day at each of the six different prices. From these data the following are calculated:

∑ x=200         ∑y= 436                     ∑xy=12515

∑x2 =7250 ∑y2 = 39234       n = 6

1. Calculate the correlation coefficient
2. Find the equation of the regression line  
3. What practical use could be made of this equation?
4. Suppose the sales manager knows that the estimated average price for the following month is k20, per Kilogram, Find how much his expected sales would be
5. What percentage of the variation in sales is explained by your model
6. At the 5% of the significance would you conclude that there is a linear relationship between x and Y

Answer 1