Does the data appear the strength of the relationship between variables is sufficient to warrant using linear regression forecasting?
Some members of management of the Fair face Cosmetic Firm believe that demand for its products is related to the promotional activities of local department stores where the cosmetics are sold. However, others in management believe that other factors, such as local annual promotional expenditures for Fair face products and local annual unit sales for Fairface lip gloss have been collected from 20 stores selected at random from different localities:
|
Store
|
Annual Unit Sales(1,000s)
|
Annual Promotional Expenditures($1.000s)
|
|
1
|
3.5
|
$12.60
|
|
2
|
7.2
|
15.5
|
|
3
|
3.1
|
10.8
|
|
4
|
1.6
|
8.7
|
|
5
|
8.9
|
20.3
|
|
6
|
5.7
|
21.9
|
|
7
|
6.3
|
25.6
|
|
8
|
9.1
|
14.3
|
|
9
|
10.2
|
15.1
|
|
10
|
7.3
|
18.7
|
|
11
|
2.5
|
9.6
|
|
12
|
4.6
|
12.7
|
|
13
|
8.1
|
16.3
|
|
14
|
2.5
|
8.1
|
|
15
|
3
|
7.5
|
|
16
|
4.8
|
12.4
|
|
17
|
10.2
|
17.3
|
|
18
|
5.1
|
11.2
|
|
19
|
11.3
|
18.5
|
|
20
|
10.4
|
16.7
|
Based on these data, does it appear that the strength of the relationship between sales and promotional expenditures is sufficient to warrant using a linear regression forecasting model? Explain your response.