The CEO of a small firm believes that there is a relationship between the number of client contacts and the dollar value of sales. To document this assertion, she gathered a sample of the following 12 observations. TheXcolumn indicates the number of client contacts last month, and

the

Ycolumn shows the value of sales ($ thousands) last month for each client sampled.

Y

X

25

8

30

10

34

12

18

13

10

10

8

7

12

14

10

9

35

14

8

3

(a) (b) (c) (d) (e)

What is the correlation betweenYandX?

Estimate the coefficients (i.e., theaandbvalues) of the regression modelY=a+bX. Interpret the values ofaandb.

Calculate the standard error of the regression (se). Interpret this result.

Is the estimated regression model statistically significant?