The following 20 observations are for two quantitative variables, x and y. Observation
x y
1 -22 22
2 -33 49
3 2 8
4 29 -16
5 -13 10
6 21 -28
7 -13 27
8 -23 35
9 14 -5
10 3 -3
11 -37 48
12 34 -29
13 9 -18
14 -33 31
15 20 -16
16 -3 14
17 -15 18
18 12 17
19 -20 -11
20 -7 -22
(a) Create a scatter chart in Excel for these 20 observations.
(b) Fit a linear trendline to the 20 observations. What can you say about the relationship between these two quantitative variables? Choose the correct answer below.
(i) The trendline confirms that there is a positive linear trend between profits and market capitalization.
(ii) The trendline confirms that there is a negative linear trend between profits and market capitalization.