Question

Cincinnati Paint Company sells quality brands of paints through hardware stores throughout the United States. The company maintains a large sales force who call on existing customers and look for new business. The national sales manager is investigating the relationship between the number of sales calls made and the miles driven by the sales representative. Also, do the sales representatives who drive the most miles and make the most calls necessarily earn the most in sales commissions? To investigate, the vice president of sales selected a sample of 25 sales representatives and determined:

• The amount earned in commissions last month (y)
• The number of miles driven last month (x₁)
• The number of sales calls made last month (x₂)

The information is reported below.

Commissions ($000)	Calls	Driven	Commissions ($000)	Calls	Driven
19	141	2,376	37	150	3,291
14	135	2,226	42	146	3,106
30	145	2,732	29	150	2,122
39	146	3,352	40	147	2,793
23	145	2,289	35	151	3,209
47	144	3,454	12	133	2,291
28	138	3,119	34	147	2,849
37	142	3,342	27	134	2,694
41	145	2,844	29	133	2,937
31	137	2,626	27	128	2,674
20	137	2,125	44	154	2,992
14	140	2,219	36	151	2,834
44	148	3,467

Develop a regression equation including an interaction term. (Negative amount should be indicated by a minus sign. Round your answers to 3 decimal places.)

Complete the following table. (Negative amounts should be indicated by a minus sign. Round your answers to 3 decimal places.)

Compute the value of the test statistic corresponding to the interaction term. (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.)

At the 0.05 significance level is there a significant interaction between the number of sales calls and the miles driven?

Answer 1

Develop a regression equation including an interaction term. (Negative amount should be indicated by a minus sign. Round your answers to 3 decimal places.)

Commissions = -375.180 + 0.120*Driven + 2.533*Calls - 0.001*x1*x2

Complete the following table. (Negative amounts should be indicated by a minus sign. Round your answers to 3 decimal places.)

variables	coefficients	std. error	t (df=21)	p-value
Intercept	-375.180
Driven	0.120	0.063	1.904	0.071
Calls	2.533	1.212	2.091	0.049
x1*x2	-0.001	0.000	-1.656	0.113

Compute the value of the test statistic corresponding to the interaction term. (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.)

-0.00

At the 0.05 significance level is there a significant interaction between the number of sales calls and the miles driven?

No