Question

3. A sales manager collected the following data on
annual sales and years of experience.

Salesperson Years of Experience Annual Sales ($000s)

1 1 132

2 3 160

3 4 145

4 5 168

5 6 168

6 8 180

7 10 188

8 11 218

9 11 193

10 13 229

a. Develop a scatter diagram for these data with years of
experience as the independent variable.

b. Develop an estimated regression equation that can be used to
predict annual sales given years of experience.

c. Provide an interpretation of the slope of the estimated
regression equation.

d. Use the estimated regression equation to predict annual sales
for a salesperson with nine years of experience.

Answer #1

Ans:

a)

b)

experience(x) | Annual Sales,y | xy | x^2 | y^2 | |

1 | 1 | 132 | 132 | 1 | 17424 |

2 | 3 | 160 | 480 | 9 | 25600 |

3 | 4 | 145 | 580 | 16 | 21025 |

4 | 5 | 168 | 840 | 25 | 28224 |

5 | 6 | 168 | 1008 | 36 | 28224 |

6 | 8 | 180 | 1440 | 64 | 32400 |

7 | 10 | 188 | 1880 | 100 | 35344 |

8 | 11 | 218 | 2398 | 121 | 47524 |

9 | 11 | 193 | 2123 | 121 | 37249 |

10 | 13 | 229 | 2977 | 169 | 52441 |

Total | 72 | 1781 | 13858 | 662 | 325455 |

slope,b=(10*13858-72*1781)/(10*662-72^2)=**7.206**

y-intercept,a=(1781-7.206*72)/10=**126.22**

Regression eqn:

y**'=7.206x+126.22**

c)

slope coefficient of 7,206,indicates that for each increment of experience(in years),there is 7.206 thousand of dollars increase in sales.

intercept of 126.22 means that when there is no experience i.e.x=0,annual sales=126.22 (in thousands)

d)

When x=9,

y'=7.206*9+126.22=**191.074**

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

A sales manager collected the following data on x =
years of experience and y = annual sales ($1,000s). The
estimated regression equation for these data is
ŷ = 80 + 4x.
Salesperson
Years of
Experience
Annual Sales
($1,000s)
1
1
80
2
3
97
3
4
92
4
4
107
5
6
103
6
8
101
7
10
119
8
10
118
9
11
127
10
13
136
A. Compute SST, SSR, and SSE.
B. Compute the coefficient of...

Salesperson
Years of Experience
Annual Sales ($1000s)
1
1
85
2
4
100
3
4
91
4
4
97
5
6
107
6
9
109
7
10
118
8
11
126
9
10
113
10
14
132
Compute b1 and b0 (to 1
decimal).
b1 =
b0 =
Complete the estimated regression equation (to 1 decimal).
y = ... + x
According to this model, what is the change in annual sales
($1000s) for every year of experience (to 1...

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.
Salesperson
Years of Experience
Annual Sales ($1000s)
1
1
84
2
4
93...

1. A sales manager collected the following data on annual sales
for new customer accounts and the number of years of experience for
a sample of 10 salespersons.
Salesperson
Years of
Experience
Annual Sales
($1000)
1
1
84
2
1
81
3
2
87
4
4
101
5
5
104
6
7
118
7
8
119
8
9
120
9
10
127
10
11
134
a. Compute the residuals and choose a residual
plot for this problem.
2.
The following...

A statistical program is recommended.
A sales manager collected the following data on x =
years of experience and y = annual sales ($1,000s). The
estimated regression equation for these data is
ŷ = 82 + 4x.
Salesperson
Years of
Experience
Annual Sales
($1,000s)
1
1
80
2
3
97
3
4
102
4
4
107
5
6
103
6
8
101
7
10
119
8
10
128
9
11
127
10
13
136
(a) Compute the residuals.
Years of...

A statistical program is recommended.
A sales manager collected the following data on x =
years of experience and y = annual sales ($1,000s). The
estimated regression equation for these data is
ŷ = 80 + 4x.
Salesperson
Years of
Experience
Annual Sales
($1,000s)
1
1
80
2
3
97
3
4
92
4
4
102
5
6
103
6
8
111
7
10
119
8
10
123
9
11
117
10
13
136
A) Compute the residuals.
Years of...

A sales manager collected the following data on x =
years of experience and y = annual sales ($1,000s). The
estimated regression equation for these data is
ŷ = 82 + 4x.
Salesperson
Years of
Experience
Annual Sales
($1,000s)
1
1
80
2
3
97
3
4
102
4
4
107
5
6
103
6
8
101
7
10
119
8
10
128
9
11
127
10
13
136
(a)
Compute SST, SSR, and SSE.
SST = SSR = SSE...

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Y
12
2
14
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17
0
10
3
8
5
9
3
12
4
14
2
18
0
16
2
Draw a scatter plot of the data.
Write out the regression equation, then calculate and
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