A small bookstore keeps data on the number of sales people working and the daily

Question

A small bookstore keeps data on the number of sales people working and the daily sales in thousands of dollars). The regression line is Sales = 9.20 + 0.827 # of Sales People Working, and we can assume that the assumptions and conditions for regression are met Calculations with technology find that se-0.852 and SE (b1) = 0.0504. Complete parts a through b Table of Number of people working and sales Number of Sales People Workin Sales in $1000 10 10 12 15 16 20 12 16 17 16 17 19 21 27 y 17.8 SD(x) 5.64 SD(y)4.73 x 10.4

Explanation / Answer

Ans:

a)Given that

Regression equation:

y'=9.2+0.827*number of people working

when, number of people working=500

perdicted sales,y'=9.2+0.827*500=422.7

b)

Option A is correct.

No,because the extrapolation is so far from the given data that it is unlikely the model will remain accurate.

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