The Following Data Represent the Number of Flash Drives Sold $\alpha$

question 35

Essay

The following data represent the number of flash drives sold per day at a local computer shop and their prices.

a.Develop a least-squares regression line and explain what the slope of the line indicates.
b.Compute the coefficient of determination and comment on the strength of relationship between x and y.
c.Compute the sample correlation coefficient between the price and the number of flash drives sold.Use $\alpha$ = 0.01 to test the relationship between x and y.

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Definitions:

Nominal Exchange Rate

The price at which one currency can be exchanged for another currency, without adjustment for inflation.

Pesos

Pesos are the unit of currency in several countries, including Mexico and the Philippines.

Purchasing-Power Parity

An economic principle positing that currency exchange rates reach equilibrium when the purchasing power in both countries involved is equal.

Depreciated

The decrease in value of an asset over time, often due to wear and tear or obsolescence.