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.
Open spreadsheet
Compute b_{1} and b_{0} (to 1 decimal).
b_{1} =
b_{0} =
Complete the estimated regression equation (to 1 decimal).
= + x
According to this model, what is the change in annual sales ($1000s) for every year of experience (to 1 decimal)?
Compute the coefficient of determination (to 3 decimals). Note: report r^{2} between 0 and 1.
r^{2} =
What percentage of the variation in annual sales ($1000s) can be explained by the years of experience of the salesperson (to 1 decimal)?
%
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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