Airline Profits and the Price of Oil A common perception is that airline...

Airline Profits and the Price of Oil A common perception is that airline profits are strongly correlated with the price of oil. Following are annual net incomes of Continental Airlines together with the approximate price of oil in the period 2005–2010:

a. Use technology to obtain a regression line showing Continental’s net income as a function of the price of oil, and also the coefficient of correlation r.

b. What does the value of r suggest about the relationship of Continental’s net income to the price of oil?

c. Support your answer to part (b) with a plot of the data and regression line.