Question

Use this data for Questions 20-24

The distance travelled (in hundreds of miles) and sales (in thousands of dollars) for ACME Company are reflected in table below:

Miles Travelled	Sales
5	6
4	2
8	7
1	3
14	6
19	11

1. What is the Coefficient of Determination?
   1. 0.7334
   2. 0.4053
   3. 0.2267
   4. 0.1437

2. What is the Test Statistic for the Correlation Coefficient?
   1. 3.32
   2. 16.15
   3. 1.88
   4. Cannot be computed

3. What is the regression slope?
   1. 1.98
   2. 0.40
   3. 0.71
   4. 0.32

4. What is the regression intercept?
   1. 0.40
   2. 2.41
   3. 3.68
   4. 1.88
5. If a salesman travels 600 miles what is the predicted sales?
   1. $4826
   2. $2105
   3. $3638
   4. $4018

Answer 1

Solution:

1. Option A is correct A. 0.7334

Calculation:

2. Option A is correct A. 3.32

Calculation:

3. Option B is correct B. 0.40

4. Option B is correct B. 2.41

Calculation:

4. Option A is correct A. $4826

Calculation: for x=6 (in hundred) find y (in thousand)

We know regression equation for predicted sales is:

Y = 2.4074 + 0.4031 * 6 = 4.826 (in thousand)