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1) The CEOnfa local tourist agency web site would like to know whether we can predict a family's annual expenditure on recreation based on their

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1) The CEOnfa local tourist agency web site would like to know whether we can predict a family's annual expenditure on recreation based on their annual income. This information could be used to tailor marketing campaigns to certain consumer segments. 7% sample of 200 families was taken where the lowest annual income was $21,000 and the largest income was $305,000. Correlation of Income and Recreation = r = 0.83 The regression equation is Recreation = 950 + 0.07(|ncome) Interpret the correlation coefcient. There is a: 0 strong negative linear relationship between income and recreation expenditure. 0 weak negative linear relationship between income and recreation expenditure. O strong positive linear relationship between income and recreation expenditure. 0 weak positive linear relationship between income and recreation expenditure

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