A recent article in BusinessWeek listed the “Best SmallCompanies.” We are interested in the current results of thecompanies' sales and earnings. A random sample of 12 companies wasselected and the sales and earnings, in millions of dollars, arereported below.

Company	Sales ($ millions)			Earnings ($ millions)			Company	Sales ($ millions)			Earnings ($ millions)
Papa John's International	$	86.8		$	5.0		Checkmate Electronics	$	15.4		$	2.6
Applied Innovation		18.9			4.4		Royal Grip		10.8			1.7
Integracare		17.2			1.5		M-Wave		15.5			3.3
Wall Data		74.6			8.2		Serving-N-Slide		53.6			8.5
Davidson & Associates		59.9			6.9		Daig		26.6			6.0
Chico's FAS		49.6			4.1		Cobra Golf		66.5			11.0

Let sales be the independent variable and earnings be thedependent variable.

    

(a)	Compute the correlation coefficient. (Round your answerto 3 decimal places.)

     

Coefficient of correlation

     

(b)	Compute the coefficient of determination. (Round youranswer to 3 decimal places.)

     

Coefficient of determination

     

(c)	Determine the regression equation. (Round your answersto 4 decimal places.)

       

The regression equation, with the coefficients, isYˆY^ = ______ +_____  X

     

(d)	For a small company with $50 million in sales, estimate theearnings. (Round your answer to 4 decimalplaces.)

      

Estimated earnings

$  millions