Select your answer selections: difficult or easy A sales manager collected the f

Question

Select your answer selections: difficult or easy

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. Annual Sales ($1000s) 80 100 113 Years of Salesperson Experience 124 144 161 157 176 189 10 The data on y = annual sales ($1000s) for new customer accounts and z number of years of experience for a sample of 10 salespersons provided the estimated regression equation y-81.52+ 9.472. For these data-5.7, (zi-p" = 116.10, and s = 10.3315 a. Develop the 90% confidence interval for the mean annual sales for all salespersons with six years of experience (to 2 decimals) b. The company is considering hiring Tom Smart, a salesperson with six years of experience. Develop a 90% prediction interval of annual sales for Tom Smart. (to 2 decimals) c. Discuss the differences in your answers to parts (a) and (b) As expected, the prediction interval is much -Select your answer than the confidence interval. This is due to the fact that it is moreSelect your answer-to predict annual sales for one new salesperson with 6 years of experience than it is to estimate the mean annual sales for all salespersons with 6 years of experience.

Explanation / Answer

a)

from above: 90% CI =132.24 ; 144.44

b)

90% PI =118.18 ; 158.50

c)

wider

difficult

x             = 6 predcited value at X=6: 138.3400 std error confidence interval= s*(1/n+(x0-x)2/Sxx) = 3.2797 for 90 % CI value of t= 1.8595 margin of error E=t*std error                            = 6.0988 lower confidence bound=sample mean-margin of error = 132.241 Upper confidence bound=sample mean+margin of error= 144.439

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