Companies in the shipping industry vary greatly in terms of the sides of the fleet and annual revenue. The following table shows the data for 6 smaller companies in the industry:

Company A B C D E F

Ships (100s) 11.5 10.0 8.0 5.0 7.2 6.3

Revenue ($millions) 138 135 100 35 40 32

Please answer the following questions:

a. Use the least squares method to develop the estimated regression equation.

b. Panda Inc. has 500 ships in service. Use the estimated regression equation developed in part (a) to predict annual revenue for Panda Inc.

c. At = 0.05, please use t-test to test for the significance of the slope.

d. Compute the coefficient of correlation.