A sales manager collected the following data on annual sales for new customer ac

Question

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.

a)Develop an estimated regression equation that can be used to predict annual sales given the years of experience.

b)Use the estimated regression equation to predict annual sales ($1000) for a salesperson with 9 years of experience.

116

365

254

655

Salesperson Years of Experience Annual Sales 1 1 80 2 3 97 3 4 92 4 4 102 5 6 103 6 8 111 7 10 119 8 10 123 9 11 117 10 13 136

Explanation / Answer

XY and X2 as it was done in the table below.

the sum of every column:

X=70 , Y=1080 , XY=8128 , X2=632

using the formula for a and b

we get a = 80 and b = 4

y  = a + bx

y= 80 + 4x

b) here we have been given x = 9

we need to find y

therefore y = 80+9*4

= 116

therefore option A is correct

X Y XY XX 1 80 80 1 3 97 291 9 4 92 368 16 4 102 408 16 6 103 618 36 8 111 888 64 10 119 1190 100 10 123 1230 100 11 117 1287 121 13 136 1768 169

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.