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The sales manager of various sporting goods stores has been running a national advertising campaign for a few months. The monthly advertising costs (in thousands
The sales manager of various sporting goods stores has been running a national advertising campaign for a few months. The monthly advertising costs (in thousands of dollars) for a 10-month period and the corresponding net income (in thousands of dollars) (before taxes) are presented in the table opposite.
Months | Net income before taxes (y) ($000) | Monthly advertising cost (x) ($000) |
January | 135.0 | 11.0 |
February | 212.0 | 18.0 |
March | 180.0 | 12.2 |
April | 212.0 | 19.8 |
May | 200.0 | 17.5 |
June | 162.0 | 15.2 |
July | 150.0 | 14.2 |
August | 172.0 | 16.5 |
September | 155.0 | 13.0 |
October | 180.0 | 15.0 |
The scatter plot of the pairs of observations is presented below.