Question

Cincinnati Paint Company sells quality brands of paints through hardware stores throughout the United States. The company maintains a large sales force who call on existing customers and look for new business. The national sales manager is investigating the relationship between the number of sales calls made and the miles driven by the sales representative. Also, do the sales representatives who drive the most miles and make the most calls necessarily earn the most in sales commissions? To investigate, the vice president of sales selected a sample of 25 sales representatives and determined:

• The amount earned in commissions last month (y)
• The number of miles driven last month (x₁)
• The number of sales calls made last month (x₂)

The information is reported below.

Commissions ($000)	Calls	Driven	Commissions ($000)	Calls	Driven
22	143	2,375	38	150	3,291
13	132	2,228	45	145	3,103
33	148	2,735	29	147	2,122
39	146	3,354	38	146	2,795
24	142	2,291	38	153	3,213
48	142	3,449	14	134	2,287
29	140	3,116	35	145	2,852
39	140	3,342	26	135	2,692
42	146	2,845	28	133	2,933
32	137	2,627	26	128	2,674
21	137	2,122	43	158	2,990
14	140	2,222	35	147	2,830
48	150	3,464

  Click here for the Excel Data File

Develop a regression equation including an interaction term. (Negative amount should be indicated by a minus sign. Round your answers to 3 decimal places.)

Complete the following table. (Negative amounts should be indicated by a minus sign. Round your answers to 3 decimal places.)

Compute the value of the test statistic corresponding to the interaction term. (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.)

At the 0.05 significance level is there a significant interaction between the number of sales calls and the miles driven?

Answer 1

Develop a regression equation including an interaction term. (Negative amount should be indicated by a minus sign. Round your answers to 3 decimal places.)

Commissions = -380.480+ 2.581Calls + 0.121Miles - 0.001X1X2

Complete the following table. (Negative amounts should be indicated by a minus sign. Round your answers to 3 decimal places.)

Don.t know what type of table is this and there is only two possible tables so I am attaching both.Select the table which one is asked otherwise do the comment.

Coefficients

Term	Coef	SE Coef	T-Value	P-Value
Constant	-380.480	163.115	-2.333	0.030
Calls,x1	2.581	1.150	2.245	0.036
Driven,x2	0.121	0.058	2.084	0.050
x1x2	-0.001	0.000	-1.805	0.085

Anova table

Source	DF	Adj SS	Adj MS	F-Value	P-Value
Regression	3	2105.23	701.74	34.94	0.000
Calls,x1	1	101.21	101.21	5.04	0.036
Miles,x2	1	87.19	87.19	4.34	0.050
x1x2	1	65.40	65.40	3.26	0.085
Error	21	421.73	20.08
Total	24	2526.96

Compute the value of the test statistic corresponding to the interaction term. (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.)

Test statistic= -1.81

At the 0.05 significance level is there a significant interaction between the number of sales calls and the miles driven?

No, there is not significant interaction between the number of sales calls and the miles driven.