Question: Determine the correlation coefficient and interpret the relationship between X and Y. Bi-lo Appliance Super-Store has outlets in several large metropolitan areas in New England. The general sales manager aired a commercial for a digital camera on selected local TV stations prior to a sale starting on Saturday and ending Sunday. She obtained the information for Saturday-Sunday digital camera sales at the various outlets and paired it with the number of times the advertisement was shown on the local TV stations. The purpose is to find whether there is any relationship between the number of times the advertisement was aired and digital camera sales.
The pairings are:
| Location of TV Station |
Number of Airings |
Saturday-Sunday Sales($ thousands) |
| Providence |
4 |
15 |
| Springfield |
2 |
8 |
| New Haven |
5 |
21 |
| Boston |
6 |
24 |
| Hartford |
3 |
17 |
a. What is the dependent variable?
b. Draw a scatter diagram.
c. Determine the correlation coefficient.
d. Interpret these statistical measures.