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:

Profitability Index

A financial tool used to evaluate the desirability of an investment, calculated as the present value of future cash flows divided by the initial investment cost.

Cash Inflows

Money received by a business from its operational, financing, or investment activities.

Investment Projects

Initiatives undertaken by a business or organization to invest in new assets, technology, or resources with the expectation of generating future benefits.

Total-Cost Approach

A pricing strategy that considers all costs associated with producing and delivering a product or service to determine its selling price.