The sales of a company (in million dollars) for each year are shown in the table below.
x (year) 2005 2006 2007 2008 2009
y (sales) 12 19 29 37 45
a) Find the least square regression line for Ŷ =ax+b equation.
b)Calculate correlation coefficient.
c) Use the least squares regression line as a model to estimate the sales of the company in 2012.
a) The least square regression line for Ŷ =ax+b equation is Ŷ = 4.2x + 6.8.
b) The correlation coefficient is 0.988.
c) Using the least squares regression line as a model, the estimated sales of the company in 2012 is 58.6 million dollars.