A recent article in Bloomberg Businessweek listed the “Best Small Companies.” We are interested in the current results of the companies’ sales and earnings. A random sample of 12 companies was selected and the sales and earnings, in millions of dollars, are reported below.
Company
Sales
Earnings
Papa John’s International
89.2
4.90
Applied Innovation
18.6
4.40
Integracare
18.2
1.30
Wall Data
71.7
8.00
Davidson & Associates
58.6
6.60
Chico’s FAS
46.8
4.10
Checkmate Electronics
17.5
2.60
Royal Grip
11.9
1.70
M-Wave
19.6
3.50
Serving-N-Slide
51.2
8.20
Daig
28.6
6.00
Cobra Golf
69.2
12.80
Let sales be the independent variable and earnings be the dependent variable.
a. Draw a scatter diagram.
b. Compute the correlation coefficient.
c. Determine the regression equation.
d. For a small company with $50.0 million in sales, estimate the earnings.
Please submit the assignment as a word doc using APA format. Please copy and paste in or attach your Excel Worksheet which is a must to receive credits for statistical analysis.
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