Penshop have stores selling stationary in each of 6 towns. The population, \(P\), in tens of thousands and the monthly turnover, \(T\), in thousands of pounds for each of the shops are as recorded below.
| Town | Abberton | Bember | Claster | Deller | Edgeton | Figland |
| \(P\) (0.000's) | 3.2 | 7.6 | 5.2 | 9.0 | 8.1 | 4.8 |
| \(T\) (£ 000's) | 11.1 | 12.4 | 13.3 | 19.3 | 17.9 | 11.8 |
- Represent these data on a scatter diagram with \(T\) on the vertical axis. [4]
- Which town's shop might appear to be underachieving given the populations of the towns?
- Suggest two other factors that might affect each shop's turnover. [3]
You may assume that
$$\Sigma P = 37.9, \quad \Sigma T = 85.8, \quad \Sigma P^2 = 264.69, \quad \Sigma T^2 = 1286, \quad \Sigma PT = 574.25.$$
- Find the equation of the regression line of \(T\) on \(P\). [7]
- Estimate the monthly turnover that might be expected if a shop were opened in Gratton, a town with a population of 68 000. [2]
- Why might the management of Penshop be reluctant to use the regression line to estimate the monthly turnover they could expect if a shop were opened in Haggin, a town with a population of 172 000? [1]