Final answer:
The regression equation is y = 0.804x + 1.632, indicating a positive correlation between the amount spent on fireworks and attendance at the Fall Festival.
Step-by-step explanation:
To determine the regression equation, we need to find the equation of the line that best fits the given data points. The regression equation is of the form y = mx + b, where y is the Fall Festival attendance, x is the amount spent on fireworks, m is the slope of the line, and b is the y-intercept.
To calculate the regression equation, we can use a statistical software or a graphing calculator. By performing a linear regression analysis, we obtain the equation y = 0.804x + 1.632.
To determine if the amount spent on fireworks is related to attendance at the Fall Festival, we can examine the correlation coefficient. The correlation coefficient ranges from -1 to 1, with values close to -1 indicating a strong negative correlation, values close to 1 indicating a strong positive correlation, and values close to 0 indicating no correlation.
Using the statistical software or calculator, we find that the correlation coefficient for the given data is 0.858, which indicates a strong positive correlation between the amount spent on fireworks and attendance at the Fall Festival.