Question
In: Statistics and Probability
A sales manager collected the following data on annual sales for new customer accounts and the...
A sales manager collected the following data on annual sales for new customer accounts and the number of years of experience for a sample of salespersons. Salesperson Years of Experience Annual Sales ($1000s)
1 1 80
2 2 100
3 3 106
4 4 105
5 6 111
6 8 120
7 9 121
8 11 116
9 13 136
10 14 142
The data y= on annual sales($1000s) for new customer accounts and x= number of years of experience for a sample of 10 salespersons provided the estimated regression equation y=88.22+3.59x . For these data x=7.1, (xi-x)2192.90 , and s=6.8693.
a. Develop the 95% confidence interval for the mean annual sales for all salespersons with twelve years of experience. ( , ) (to 2 decimals)
b. The company is considering hiring Tom Smart, a salesperson with twelve years of experience. Develop a 95% prediction interval of annual sales for Tom Smart. ( , ) (to 2 decimals)
Solutions
Expert Solution
Solution: We can use the excel regression data analysis tool to find the answers to the given questions. The excel output is given below:
| Regression Analysis | ||||||
| Regression Statistics | ||||||
| Multiple R | 0.9317 | |||||
| R Square | 0.8681 | |||||
| Adjusted R Square | 0.8516 | |||||
| Standard Error | 6.8693 | |||||
| Observations | 10 | |||||
| ANOVA | ||||||
| df | SS | MS | F | Significance F | ||
| Regression | 1 | 2484.5997 | 2484.5997 | 52.6537 | 0.0001 | |
| Residual | 8 | 377.5003 | 47.1875 | |||
| Total | 9 | 2862.1 | ||||
| Coefficients | Standard Error | t Stat | P-value | Lower 95% | Upper 95% | |
| Intercept | 88.21877 | 4.12918 | 21.36471 | 0.00000 | 78.69686 | 97.74067 |
| Years of Experience | 3.58891 | 0.49459 | 7.25629 | 0.00009 | 2.44837 | 4.72944 |
| For Average Y | ||||||
| Interval Half-Width | 7.51 | |||||
| Confidence Interval Lower Limit | 123.78 | |||||
| Confidence Interval Upper Limit | 138.79 | |||||
| For Individual Response Y | ||||||
| Interval Half-Width | 17.53 | |||||
| Prediction Interval Lower Limit | 113.76 | |||||
| Prediction Interval Upper Limit | 148.81 | |||||
a. Develop the 95% confidence interval for the mean annual sales for all salespersons with twelve years of experience. ( , ) (to 2 decimals)
Answer: 
b. The company is considering hiring Tom Smart, a salesperson with twelve years of experience. Develop a 95% prediction interval of annual sales for Tom Smart. ( , ) (to 2 decimals)
Answer: 
orchestra answered 11 months agoRelated Solutions
A sales manager collected the following data on annual sales for new customer accounts and the...
A sales manager collected the following data on annual sales for
new customer accounts and the number of years of experience for a
sample of salespersons.
Salesperson
Years of
Experience
Annual Sales
($1000s)
1
1
80
2
3
76
3
4
72
4
6
77
5
8
92
6
8
109
7
9
126
8
9
122
9
10
124
10
11
120
The data on annual sales for new customer
accounts and number of years of experience for a sample
of salespersons provided the...
A sales manager collected data on annual sales for new customer accounts and the number of...
A sales manager collected data on annual sales for new customer
accounts and the number of years of experience for a sample of 10
salespersons. In the Microsoft Excel Online file below you will
find a sample of data on years of experience of the salesperson and
annual sales. Conduct a regression analysis to explore the
relationship between these two variables and then answer the
following questions.
Salesperson
Years of Experience
Annual Sales ($1000s)
1
3
79
2
4
92...
A Sales Manager at WATWIUC Stores collected data on annual sales (in thousand Ghana Cedis) and...
A Sales Manager at WATWIUC Stores collected data on
annual sales (in thousand Ghana Cedis)
and years of experience of 30 sales persons. He wants to explore
the relationship between years
of experience and annual sales.
a) Which variable is the dependent variable in this study?
b) Which variable is the independent variable in this study?
c) The coefficient of correlation between the dependent variable
and the independent
variable was found to be 0.9, meaning that the dependent and the...
A sales manager collected the following data on x = years of experience and y =...
A sales manager collected the following data on x =
years of experience and y = annual sales ($1,000s). The
estimated regression equation for these data is
ŷ = 83 + 4x.
Salesperson
Years of
Experience
Annual Sales
($1,000s)
1
1
80
2
3
97
3
4
102
4
4
107
5
6
103
6
8
116
7
10
119
8
10
123
9
11
127
10
13
136
(a)
Compute SST, SSR, and SSE.
SST=SSR=SSE=
(b)
Compute the coefficient...
A sales manager collected the following data on x = years of experience and y =...
A sales manager collected the following data on x =
years of experience and y = annual sales ($1,000s). The
estimated regression equation for these data is
ŷ = 82 + 4x.
Salesperson
Years of
Experience
Annual Sales
($1,000s)
1
1
80
2
3
97
3
4
102
4
4
107
5
6
103
6
8
101
7
10
119
8
10
128
9
11
127
10
13
136
(a)
Compute SST, SSR, and SSE.
SST=SSR=SSE=
(b)
Compute the coefficient...
A customer service manager at a retail clothing store has collected numerous customer complaints from the...
A customer service manager at a retail clothing store has collected numerous customer complaints from the forms they fill out on merchandise returns. To analyze trends or patterns in these returns, she has organized these complaints into a small number of sources or factors. en mensen e n de les emociona com a refer torse
This is most closely related to the tool of TQM.
A. scatter diagram
B. histogram
C. process control chart
D. quality loss function
E. cause-and-effect...
Chase Bank account division has collected data on the age of credit accounts. The data collected...
Chase Bank account division has collected data on the age of
credit accounts. The data collected indicate that the age of the
accounts follows a normal distribution with mean 18 years and
standard deviation 6 years.
a. What proportion of the accounts are between 20 and 32 years
old?
b. What is the number of years in which 75% of all accounts
are above?
Data collected by an arcade store manager yielded the following confidence interval for the proportion of...
Data collected by an arcade store manager yielded the following
confidence interval for the proportion of customers who played the
new video game the store just bought: (21% to 30%). Give the margin
of error in percentage points
Sales data were collected from a small bookstore. The following is an equation for the regression...
Sales data were collected from a small bookstore. The following
is an equation for the regression line of the data.
Sales = 9.12 + 0.818(Number of Salespeople Working)
The assumptions and conditions for regression are met, and
from technology, it is known that SE(b1) = 0.0920 and
Se =1.640.
Number of Salespeople Working // Sales (in $1000s)
1 // 11
2 // 10
6 // 12
9 // 16
9 // 18
10 // 20
13 // 19
14 //...
A quality control manager for Hewlett Packard has collected the following data on the quality status...
A quality control manager for Hewlett Packard has collected the
following data on the quality status of hard drives by supplier.
She inspected a total of 700 hard drives. For a hard drive selected
at random, answer the questions that follow the table.
Hard Drive Status
Supplier
Working
Defective
TOTAL
Company A
123
10
133
Company B
181
15
196
Company C
51
5
56
Company D
303
12
315
TOTAL
658
42
For a hard drive selected at...
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