The management of a chain of fast food restaurants wants to investigate the relationship between the daily sales volume (in dollars) of a company restaurant and the number of competitor restaurants within a 1 - kilometre radius.The following data have been collected.

NUMBER OF COMPETITORS WITHIN 1 KM SALES

1 3600

1 3300

2 3100

3 2900

3 2700

4 2500

5 2300

5 2000

a.Develop the least squares estimated regression equation (using both excel and manual computation) that relates daily sales volume to the number of competitor restaurants within a 1-kilometre radius.

b.What is the value of the Product Moment Co-efficient of Correlation?What is the relationship between the variables.

c.What is the value of the Co-efficient of Determination?Is the model a good estimator?Explain.

d.Use the estimated regression equation developed in part (a) to forecast the daily sales volume for a particular company restaurant that has seven (7) competitors within a 1-kilometre radius.