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. Open spreadsheet
Compute b1 and b0 (to 1 decimal).
b1 =
b0 =
Complete the estimated regression equation (to 1 decimal).
= + x
According to this model, what is the change in annual sales ($1000s) for every year of experience (to 1 decimal)?
Compute the coefficient of determination (to 3 decimals). Note: report r2 between 0 and 1.
r2 =
What percentage of the variation in annual sales ($1000s) can be explained by the years of experience of the salesperson (to 1 decimal)?
%
A new salesperson joins the team with 8 years of experience. What is the estimated annual sales ($1000s) for the new salesperson (to the nearest whole number)?
1 1 85
2 3 97
3 3 95
4 5 97
5 7 105
6 8 106
7 10 122
8 10 120
9 12 113
10 12 134