Question

# A sales manager collected data on annual sales for new customer accounts and the number of...

A sales manager collected data on annual sales for new customer accounts and the number of years of experience for a sample of 10 salespersons. In the Microsoft Excel Online file below you will find a sample of data on years of experience of the salesperson and annual sales. Conduct a regression analysis to explore the relationship between these two variables and then answer the following questions.

1. Compute b1 and b0 (to 1 decimal).

b1 =

b0 =

Complete the estimated regression equation (to 1 decimal).

=  + x

2. According to this model, what is the change in annual sales (\$1000s) for every year of experience (to 1 decimal)?

3. Compute the coefficient of determination (to 3 decimals). Note: report r2 between 0 and 1.

r2 =

What percentage of the variation in annual sales (\$1000s) can be explained by the years of experience of the salesperson (to 1 decimal)?

%

4. A new salesperson joins the team with 8 years of experience. What is the estimated annual sales (\$1000s) for the new salesperson (to the nearest whole number)?

\$

` `
 Salesperson Years of Experience Annual Sales (\$1000s) 1 2 83 2 2 92 3 3 88 4 3 97 5 6 106 6 7 112 7 9 124 8 11 122 9 11 119 10 12 132

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