The following data set gives the type of company, amount of sales in millions of

Question

The following data set gives the type of company, amount of sales in millions of dollars, and the number of employees hired for some companies. A study is interested in whether there is a relationship between amount of sales and the number of employees.

33000

State the independent variable.

type of company

sales in millions of dollars   

number of employees hired

State the dependent variable.

type of company

sales in millions of dollars   

number of employees hired

Use the JMP applet to find the regression equation and the correlation coefficient. (Round your answers to four decimal places.)

What do the regression plot and the correlation coefficient tell us about the relationship?

The regression plot does show a positive relationship between sales and number of employees while the correlation coefficient indicates a negative relationship.

Both the plot and the correlation coefficient indicate that there is not a relationship between sales and number of employees.   

Both the plot and the correlation coefficient indicate that there is a positive relationship between sales and number of employees.

Both the plot and the correlation coefficient indicate that there is a negative relationship between sales and number of employees.

Find the average increase in the response variable when the explanatory variable increases by one unit. (Round your answers to four decimal places.)


State in the context of the problem what this means.

An increase of one employee is associated with a predicted increase of about 0.12 million dollars in sales.

An increase of 0.12 employee is associated with a predicted increase of one million dollars in sales.    

An increase of one employee is associated with a predicted increase of about $0.12 in sales

.An increase of one employee is associated with a predicted increase of one dollar in sales.

How much in sales can be predicted if a company employed 70,000 people? (Round your answers to tow decimal places.)
_____ million dollars

Type Sales ($M) # Employ Type Sales ($M) # Employ Computer 855.1 7523 Pharmaceutical 969.2 3418 Pharmaceutical 5453.5 40929 Pharmaceutical 6698.4 34400 Computer 2153.7 8200 Computer 5956 56000 Pharmaceutical 6747 50816 Pharmaceutical 5903.7 42100 Computer 5284 12068 Computer 2959.3 31404 Pharmaceutical 9422 54100 Pharmaceutical 1198.3 8527 Computer 2876.1 9500 Computer 990.5 8578 Computer 709.3 5000 Pharmaceutical 3243 21300 Computer 2952.1 18000 Computer 1382.3 2900 Computer 784.7 4708 Computer 1014 9100 Computer 1324.3 13740 Computer 1769.2 10200 Pharmaceutical 4175.6 28200 Computer 1643.9 9548 Computer 11899 95000 Pharmaceutical 2916.3 20100 Computer 873.6 8200 Computer 3078.4 28334 Pharmaceutical 9844 83100 Pharmaceutical 4272

33000

Explanation / Answer

State the independent variable.   

number of employees hired

State the dependent variable.

type of company

Y = 50x + 152

r2 = 0.95

The regression plot does show a positive relationship between sales and number of employees while the correlation coefficient indicates a negative relationship.

An increase of one employee is associated with a predicted increase of about $0.12 in sales

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