Question

A local diapers company has the following data in terms of products sold per births given in the particular area for the last years. The company's owner believes that the sales forecast is possible for the upcoming year if the births of the year is known. If you agree with this statement, please justify your consent. If you disagree, please elaborate for your disagreement.

Data Table:

Year	Diapers Sold	Births in Area
1	25	870
2	30	990
3	32	970
4	36	1000
5	38	1010
6	40	1030
7	45	1050

Answer 1

A scatter plot of the data looks like this

50 45 40 35 O 30 25 r 20 15 10 ф у-О.104х-67.713 200 400 600 800 1000120 0 Births in Area

We observe a high degree of correlation between births in area and diapers sold. R = √0.8248 = 0.9082 is a high value indicating a strong association between the two variables.

So, it is possible to predict diapers sold based on births in the area.