The following table shows the amount of money (in $1000's) spent on marketing per month, at ABC furniture and the amount of corresponding monthly sales.

ABC Furniture wants to see if marketing money spent is a good predictor of sales.

Jan.

Feb.

Mar.

Apr.

May

June

Money spent in $1000's

8

6

5

10

6

7

Monthly sales

6

6

5

8

7

5

Given:n = 6SumX = 42SumY = 37SumXY = 266SumX²= 310SumY²= 235

a)Calculate the correlation coefficient.Round final answer to 4 decimal places.(3marks)

Show at least two steps BEFORE YOUR FINAL ANSWER! -You can substitute values right into the formula below.

r=[n x (Sum XY) - (sum X)(Sum Y)

[n x (Sum(X²)) - (SumX)²] x[n x (Sum Y²) - (Sum Y)²]

b)Interpret the Correlation Coefficient (2 marks)