Reference no: EM132720791

1. Cover Me, Inc. sells umbrellas in three cities. Management assumes that annual rainfall is the primary determinant of umbrella sales, and it wants to generate a linear regression equation to estimate potential sales in other cities. Given the data below, what is the sales forecast if City D has 24 inches of annual rainfall?

Rainfall Sales

X Y

City A 30 in. 2000

City B 25 in. 1500

City C 12 in. 1300

a) 1225

b) 1450

c) 1575

d) 1660

e) 1800

2. Determine the correlation coefficient between these two variables.

a) 0

b) 0.5

c) 0.78

d) 0.88

e) 1

3. What percentage of the variability in sales of umbrellas can be explained by how many inches of rainfall a city gets?

a) 0

b) 0.5

c) 0.78

d) 0.88

e) 1