Question

A recent article in Bloomberg Businessweek listed the “Best Small Companies.” We are interested in the current results of the companies’ sales and earnings. A random sample of 12 companies was selected and the sales and earnings, in millions of dollars, are reported below.

	Sales				Earnings						Sales				Earnings
Company	($ millions)				($ millions)				Company		($ millions)				($ millions)
Papa John’s International	$	89.2				4.9				Checkmate Electronics	$	17.5				2.6
Applied Innovation		18.6				4.4				Royal Grip		11.9				1.7
Integracare		18.2				1.3				M-Wave		19.6				3.5
Wall Data		71.7				8.0				Serving-N-Slide		51.2				8.2
Davidson & Associates		58.6				6.6				Daig		28.6				6.0
Chico’s FAS		46.8				4.1				Cobra Golf		69.2				12.8

  Click here for the Excel Data File

1. Draw a scatter diagram.

2. On the graph below, use the point tool to plot the point corresponding to the first Sales and her Earnings (Sales 1).

3. Repeat the process for the remainder of the sample (Sales 2, Sales 3, … ).

4. To enter exact coordinates, double-click on the point and enter the exact coordinates of x and y.

Let sales be the independent variable and earnings be the dependent variable. (Do not round intermediate calculations. Round your answers to 3 decimal places.)

Data:

Sales	Earnings
89.2	4.90
18.6	4.40
18.2	1.30
71.7	8.00
58.6	6.60
46.8	4.10
17.5	2.60
11.9	1.70
19.6	3.50
51.2	8.20
28.6	6.00
69.2	12.80

Answer 1

here we have plot scatterplot in excell .here scatterplot does not show linear pattern.

here we need transformation.