The following data were collected on the study of the relationship between a company’s retail sales and advertising dollars:

Retails Sales ($) .... Advertising ($)

29,789 ........ 16,893

35,434 ........ 18,398

38,732 ........ 20,376

43,585 ........ 22,982

46,821 ........ 25,732

49,283 ........ 27,281

52,271 ........ 32,182

55,289 ........ 35,298

57,298 ........ 36,281

58,293........ 38,178

(a) Obtain a linear regression line for the data.

(b) Compute a correlation coefficient and determine the strength of the linear relationship.

(c) Using the linear regression equation, develop a forecast of retail sales for advertising dollars of $40,000.