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Exercise 12-12 Mr. James McWhinney, president of Daniel-James Financial Services

ID: 3355715 • Letter: E

Question

Exercise 12-12

Mr. James McWhinney, president of Daniel-James Financial Services, believes there is a relationship between the number of client contacts and the dollar amount of sales. To document this assertion, Mr. McWhinney gathered the following sample information. The X column indicates the number of client contacts last month, and the Y column shows the value of sales ($ thousands) last month for each client sampled. (Round the final answers to 2 decimal places.)

          

        

Determine the standard error of estimate.

          

Suppose a large sample is selected (instead of just 10). About 68% of the predictions regarding sales would occur between what two values? Assuming that the Standard Error of Estimate does not change. Use z = 1.

Mr. James McWhinney, president of Daniel-James Financial Services, believes there is a relationship between the number of client contacts and the dollar amount of sales. To document this assertion, Mr. McWhinney gathered the following sample information. The X column indicates the number of client contacts last month, and the Y column shows the value of sales ($ thousands) last month for each client sampled. (Round the final answers to 2 decimal places.)

Explanation / Answer

A)

x

x2

y

y2

xy

37

1369

51

2601

1887

15

225

22

484

330

42

1764

62

3844

2604

50

2500

84

7056

4200

19

361

26

676

494

38

1444

69

4761

2622

25

625

45

2025

1125

12

144

35

1225

420

15

225

30

900

450

19

361

29

841

551

Average

27.2

45.3

Sum

272

9018

453

24413

14683


Regression equation is:

                    

=14683-((272*453))/10

= 2361.4

= 9018-((272*272))/10

= 1619.6

=2361.4/1619.6

=1.4580

= 45.3-(1.4580*27.2)

= 5.6424

The regression equation is:

=-5.6424 + 1.4580x

x

x2

y

y2

xy

37

1369

51

2601

1887

15

225

22

484

330

42

1764

62

3844

2604

50

2500

84

7056

4200

19

361

26

676

494

38

1444

69

4761

2622

25

625

45

2025

1125

12

144

35

1225

420

15

225

30

900

450

19

361

29

841

551

Average

27.2

45.3

Sum

272

9018

453

24413

14683