The analyst knows that one of the variables (either VAR00001 or VAR00002) is total value of sales (in millions of pounds) and the other is the number of catalogues mailed out (in millions) for 10 mail order companies.

State, giving a brief explanation, which variable you think should be the dependent variable.

What is the equation for the line of best fit? Comment on the size and significance of the estimated coefficients.

Plot the line of best fit, what is the value of VAR00002 when VAR00001 is 8; what is the value of VAR00002 when VAR00001 is 30. Add these data points to your plot. How confident are you that the line of best fit should not be a simple horizontal plot?

Comment on the correlation between the variables and the overall measure of goodness of fit for the model.

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