You need to show your work. All parts must be done manually without use of a sof

Question

You need to show your work. All parts must be done manually without use of a software. 2100 2000 3500 2400 20 28 32 16 40 2000 100 3200 340 3000 20 Total: A department store is interested in the relationship between sales and months of experience of its sales people. A random sample of 10 salespersons is selected and results are presented in the table. Assuming the following linear relationship, Sales-Bot ßExpertu, 1- Estimate the unknown parameters using method of OLS 2- Interpret the parameter estimates. 3- Complete the table 4- Verify that residuals add up to zero. 5- Verify that x û 0 6- Calculate SSR, standard error of regression (SER), and standard error of ß1. 7- Calculate the following expression: [SST-ß1(2 xy - nxy)]. Is it the same as SSR? 8- Calculate and interpret R2. 9- Test for significance of at -0.05. Calculate and interpret the p-value.

Explanation / Answer

*We are supposed to do only four sub-parts. For solution to other please post as a different question.

Sales(y) Experience(x) (x-xbar) (y-ybar) (x-xbar)(y-ybar) (x-xbar)2 yhat uhat (uhat)2 2100 17 -6.8 -900 6120 46.24 2260.74 -160.74 25837.35 2000 20 -3.8 -1000 3800 14.44 2586.84 -586.84 344381.2 3500 28 4.2 500 2100 17.64 3456.44 43.56 1897.474 2400 22 -1.8 -600 1080 3.24 2804.24 -404.24 163410 3300 32 8.2 300 2460 67.24 3891.24 -591.24 349564.7 2000 16 -7.8 -1000 7800 60.84 2152.04 -152.04 23116.16 5100 40 16.2 2100 34020 262.44 4760.84 339.16 115029.5 3200 18 -5.8 200 -1160 33.64 2369.44 830.56 689829.9 3400 25 1.2 400 480 1.44 3130.34 269.66 72716.52 3000 20 -3.8 0 0 14.44 2586.84 413.16 170701.2 Total 56700 521.6 1) 1 = [(x-xbar)(y-ybar)]/(x-xbar)2 Xbar and ybar are mean of Experience and sales respectively 1 =(56700)/(521.6) 1 = 108.7039877 0 = ybar -1*xbar 0 = 412.8448 2) The value of 1 tells that if experience increases by one year sales on average increases by 108.7. The intercept   0 tells us that sales equals 412.8 with 0 months of experience. 3) Above 4) Yes

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