A recent study considered the effects of innovation on employment in Latin America.7 It seems reasonable that as more firms produce new products, they would need more workers, and employment would...

A recent study considered the effects of innovation on employment in Latin America.7 It seems reasonable that as more firms produce new products, they would need more workers, and employment would rise. For small firms in Argentina, let y be the yearly percentage of employment growth and x be the percentage of small firms that are product or process innovators. Assume the estimated regression line is

 Sailboat enthusiasts believe that the wind speed (x, in miles per hour) is linearly related to (downwind) boat speed (y, in knots). For wind speeds between 10 and 30 mph and Hobie catamarans, the following data were recorded.