Happy Lodge Ski Resorts tries to forecast monthly attendance.

The management has noticed a direct relationship between the average monthly temperature and attendance.

a. Given five months of average monthly temperatures and corresponding monthly attendance, compute a linear regression equation of the relationship between the two. If next month’s average temperature is forecast to be 45 degrees, use your linear regression equation to develop a forecast.

Month Average Temperature Resort Attendance

(in thousands)

1 24 43 2 41 31 3 32 39 4 30 38 5 38 35

b. Compute a correlation coefficient for the data and determine the strength of the linear relationship between average temperature and attendance. How good a predictor is temperature for attendance?