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

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l) The CEO of a 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. A 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(lncome) interpret the correlation coefcient. There is a: l. 0 strong negative linear relationship between income and recreation expenditure. 0 weak negative linear relationship between income and recreation expenditure. 0 strong positive linear relationship between income and recreation expenditure. 0 weak positive linear relationship between income and recreation expenditure

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