9. In the territory versus sales example (based on the data from Table 11.2.3),
ID: 3312358 • Letter: 9
Question
9. In the territory versus sales example (based on the data from Table 11.2.3), the least-squares line to predict sales based on the population of the territory was found to be
Expected sales = $1,371,744 + $0.23675045 (Population)
a. Interpret the slope coefficient as a number with a simple and direct business meaning.
b. What proportion of the variation in sales from one agent to another is attributable to territory size? What proportion is due to other factors?
c. Does territory size have a significant impact on sales? How do you know?
d. Find the p-value (as either p>0.05, p<0.05, p<0.01, or p<0.001) for the significance of the slope coefficient.
e. Find the actual p-value for the significance of the slope coefficient, using statistical software, and use it to verify your answer to part d.
Use excel
Explanation / Answer
a.Interpret the slope coefficient as a number with a simple and direct business meaning.
A= expected sales value of an additional person, within the territory, is $0.23675045.
b) What proportion of the variation in sales from one agent to another is attributable to territory size? What proportion is due to other factors?
A= 79.67%; 20.33%.
c) Does territory size have significant impact on sales? How do you know?
A= Even though there’s an actual increasing tendency, as seen from the graph, a value lower than 90% for the r2, states that there’s not a good lineal tendency, which will imply an existing relationship between the data. Though, as mentioned, since there’s a visual increasing tendency, territory do impact positively on sales, but to actually know at what level of significance, a test must be made.
d) Find the p-value (as either p>0.05, p<0.05, p<0.01, or p<0.001) for the significance of the slope coefficient.
A= p<0.01
e) Find the actual p-value for the significance of the slope coefficient, using statistical software, and use it to verify your answer to part d.
A= p-value = 0.0012.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.