Question 985838
a)


The linear correlation is fairly strong since -0.88 is somewhat close to -1. The closer you get to +1 or -1, the stronger the linear correlation is.


-------------------------------------------------------

b)


This linear correlation is negative because r is negative. Over time, the volume of shares traded is decreasing. 


-------------------------------------------------------


c)


At the end of the year is t = 12 months. Plug this value into the regression line function


S(t) = 18 - 0.46t
S(12) = 18 - 0.46*12
S(12) = 12.48


The predicted volume at the end of the year is approximately 12.48 million shares.