Therefore, the regression equation for the staff costs vs. Sales becomes
If the sales increases by 1 million then the model predict the staff, cost will increase by 14.942497 million. The line of best fit indicates a positive linear relationship between the staff cost and sales. The convergence of the points towards the mean further shows little variation in the various factors/variables that determines the staff cost in the company. There is little erroneous data indicated by a single outlier at the upper right corner of the chart. The coefficient of determination further a test to a god fit to the data ...
