The following analysis attempts to determine if there is a statistically significant linear relationship between the number of international stores and the annual international sales revenue for the Phoenix Mart company, during the years 1995 through 1998.
The following data was collected from a report titled “Taking Wal-Mart Global: Lessons From Retailing's Giant” (Govindarajan, Gupta, 2002). The data collected for the given years is summarized in the following table:
Year
|
Number of International Stores
|
International Sales (Billions)
|
1995
|
226
|
1.511
|
1996
|
276
|
3.712
|
1997
|
314
|
5.002
|
1998
|
601
|
7.517
|
The following scatterplot shows the relationship between the two variables, along with a trendline representing the best-fit linear model, the linear regression equation for that model, and the coefficient of determination value.
