Solve the following problem:
Wages versus Sales Volume A department store chain collected data from each of its stores for a month. The data on total wages paid to sales personnel and on sales volume are as follows:
|
Store
|
Sales Wages
(thousands)
|
Sales Volume
(hundreds of thousands)
|
|
A
|
30.2
|
3.7
|
|
B
|
52.1
|
4.8
|
|
C
|
23.6
|
2.7
|
|
D
|
38.2
|
3.5
|
|
E
|
45.8
|
4.7
|
|
F
|
59.2
|
5.1
|
|
G
|
41.7
|
3.9
|
|
H
|
62.1
|
5.4
|
(a) Plot the scatter diagram, using wages as the independent variable x.
(b) Find the least-squares regression line and the correlation coefficient.
(c) Using the regression line found in Exercise 26(b), determine how many thousands of dollars will be spent in sales wages to support a sales volume of $700,000.