A company that produces and markets video games wants to estimate the predictability of per capita consumer spending on video games in the United States. For the most recent seven years, the amount of annual spending per person per year is shown here:

(a) For the (x, y) data set of part (a), compute the equation of the sample least-squares line Å· = a + bx. If the per capita spending was x = $42 one year, what do you predict for the spending the next year?
(b) Compute the sample correlation coefficient r and the coefficient of determination r2. Test p > 0 at the 1% level of significance. Would you say the time series of per capita spending on video games is relatively predictable from one year to the next? Explain.

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Year 3 4 5 6 $ per capita 32.23 34.03 443.3444.64 49. 51.89