A small bookstore keeps data on the number of sales people working and the daily
ID: 3069674 • Letter: A
Question
A small bookstore keeps data on the number of sales people working and the daily sales (in thousands of dolars) The regression line is Sales-7 89 +0 876 # of Sales People Working, and we can assume that the assumptions and conditions for regression are met. Calculations with technology find a -0.868 and SE (bi) -0.0513 Complete parts a through b Click the icon to view the data table of the number of people working and sales a) Find the predicted sales on a day with 500 employees working The predicted sales are thousand dollars (Round to one decimal place as needed) bj Is this prediction Skely to be useful? Choose the correct answer below O A. No, because the model does not give enough accuracy to make an accurate prediction O B. No because the extrapolation is so far from the given data that i is unlikely the model will remain accurate O c. Yes, because the standard error is low so the model is a good fit D. Yes,because the data appear to be linear so the behavior should remain linearExplanation / Answer
Sol:
predicted sales for 500 employees
sales=7.89+0.876*500
=445.89
predicted sales are 445.89 thousand dollars
no because the extrapolation is so far from the given data that is unlikely the model will remain accurate.