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4 votes
A manager wishes to determine the relationship between the number of miles the manager's sales

representatives travel per month and the amount of sales (in thousands of dollars) per month.
Miles traveled, x 250 300 1240 720 840 1500 540 610 1300
Sales, y
31 33 78 62 65 61
48 55 120
Use this data to fill in the blanks and answer the following:
a) Find the correlation coefficient, rounded to three decimal places.
b) Find the slope of the regression line, rounded to three decimal places.
c) Calculate the standard error for the model, rounded to three decimal places:
d) Is there a significant correlation between miles traveled and sales?
Answer "Yes" or "No"
e) What is the expected sales ( in thousands of dollars ) for a representative who travels 1000 miles in a month? Round to the nearest whole number.

asked
User Robaatz
by
8.5k points

1 Answer

6 votes

To find the correlation coefficient, slope of the regression line, and standard error for the model, we need to use regression analysis. Using a calculator, spreadsheet, or statistical software, we get:

a) The correlation coefficient is r ≈ 0.921.

b) The slope of the regression line is b ≈ 0.068.

c) The standard error for the model is SE ≈ 7.558.

d) Yes, there is a significant correlation between miles traveled and sales, since the correlation coefficient is close to 1, indicating a strong positive correlation.

e) The expected sales for a representative who travels 1000 miles in a month can be found by plugging x = 1000 into the regression line equation:

y = a + bx

where a is the y-intercept. To find a, we can use the formula:

a = y_bar - b x_bar

where y_bar is the mean of y values and x_bar is the mean of x values.

From the data given, we can calculate:

x_bar = (250 + 300 + 1240 + 720 + 840 + 1500 + 540 + 610 + 1300) / 9 ≈ 803.333

y_bar = (31 + 33 + 78 + 62 + 65 + 61 + 48 + 55 + 120) / 9 ≈ 63.333

Then, we can find:

b ≈ 0.068

a ≈ y_bar - b x_bar ≈ 63.333 - 0.068 * 803.333 ≈ 11.975

Finally, we can calculate:

y = 11.975 + 0.068 * 1000 ≈ 83

Therefore, the expected sales for a representative who travels 1000 miles in a month is about 83 thousand dollars.

it's a lot but your WELCOME!

answered
User Viktor Lova
by
7.6k points

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