Question

0 salespersons. In the table 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).
2. Complete the estimated regression equation (to 1 decimal).
3. According to this model, what is the change in annual sales ($1000s) for every year of experience (to 1 decimal)?
4. Compute the coefficient of determination (to 3 decimals). Note: report r2 between 0 and 1.
5. What percentage of the variation in annual sales ($1000s) can be explained by the years of experience of the salesperson (to 1 decimal)?

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 table 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).
2. Complete the estimated regression equation (to 1 decimal).
3. According to this model, what is the change in annual sales ($1000s) for every year of experience (to 1 decimal)?
4. Compute the coefficient of determination (to 3 decimals). Note: report r2 between 0 and 1.
What percentage of the variation in annual sales ($1000s) can be explained by the years of experience of the salesperson (to 1 decimal)?

Years of Experience Annual Sales ($1000s) Salesperson
1 1 85
2 3 97
3 3 95
4 5 97
5 7 105
6 8 106
7 10 122
8 10 120
9 12 113
10 12 134

Answer 1

Answer:

(1)-

b1 =~3.4

bo= ~ 82.8

(2)- ý=[82.8]+[3.4] x

(3)- The change in annual sales ($1000) for every year of experience is= 3.4

(4)-r^2=~ 0.847

Estimated annual sales= $110514

Step-by-step explanation:

(1)- b1 = 3.4606

=~3.4

bo = 82.8296

= ~ 82.8

(2)-

ý=[82.8]+[3.4] x

(3)-The change in annual sales ($1000) for every year of experience is= 3.4

(4)- r^2 = 0.84776

=~ 0.847

Percentage of the variation in annual sales can be explained by the years of experience

of the salesperson 84.7%.

Estimated annual sales

= 82.8296 + 3.4606 × 8 ($ 1000).

= 110.5144 ( $1000)

= $ 110514:4

= $110514