Question

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
3	3	87
4	4	100
5	6	108
6	8	107
7	9	120
8	11	117
9	11	116
10	13	138

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)?

Answer 1

a)

b) Coefficient of x give us the change in annual sales for every year of experience = 3.9444
c)

d) x = 8

Please hit thumps up if the answer helped you