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Question

MindTap, Cengage Learning × C | ng cengage.com/st. ng.cengage.com/activityservice,·.. E3 Government & Militar.. 80% … | asearch NMAC Finance Accou. @ Firstmark Services e Sean Johnson ? Excel Online template 12.3 Microsoft Excel: Free-form Activity Due on Dec 3 pt 11:59 PM CST FILE HOME INSERT DATA REVIEW VEW Tell me what Question Excel Freeform Activity: Linear Regression and the Coefficient of Determination 1 Salesperson Years of Experience Annual Sales ($1000s) A sales manager collected data on annual sales for new customer accounts and the number of years of exp for a sample of 10 salespersons. In the Microsoft Excel Online file below you experience of the salesperson and annual sales. Conduct a these two variables and then answer the following questians. erience will find a sample of iata on years of hip between regression analysis to explare the 92 94 105 106 109 123 119 119 140 6 a. Compute Di and bo (to 1 decimal) 10 10 10 12 14 16 18 10 Complete the estimated regression equation (to 1 decimal) b. According to this model, what is the change in annual sales ($1000s) for every year of experience (to 1 decimal) 7 c. Compute the coefficient of determination (to 3 decimals). Note: report r2 between 0 and 1 19 What percentage of the variation in annual sales ($10005) can be expiained by the years of experience of the salesperson (to 1 decimal)? 23 24 25 d. A new salesperson joins the team with 6 years of experience, What is the estimated annual sales ($1000s) for the new salesperson (to the nearest whole number)? 27 28

Explanation / Answer

Result:

a).

b1=4.5, bo=75.2

regression equation , y=75.2+4.5*x

b). 4.5

c). 0.954

percentage: 95.4%

estimated annual income when x=6 is 102 ( in $1000s).

Regression Analysis

0.954

n

10

r

0.976

k

1

Std. Error

3.986

Dep. Var.

sales

ANOVA table

Source

SS

df

MS

F

p-value

Regression

2,608.9828

1  

2,608.9828

164.19

1.30E-06

Residual

127.1172

8  

15.8897

Total

2,736.1000

9  

Regression output

confidence interval

variables

coefficients

std. error

   t (df=8)

p-value

95% lower

95% upper

Intercept

75.1655

2.9048

25.876

5.34E-09

68.4670

81.8640

year

4.4713

0.3489

12.814

1.30E-06

3.6666

5.2759

Predicted values for: sales

95% Confidence Interval

95% Prediction Interval

year

Predicted

lower

upper

lower

upper

Leverage

6

101.993

98.846

105.141

92.277

111.709

0.117

Regression Analysis

0.954

n

10

r

0.976

k

1

Std. Error

3.986

Dep. Var.

sales

ANOVA table

Source

SS

df

MS

F

p-value

Regression

2,608.9828

1  

2,608.9828

164.19

1.30E-06

Residual

127.1172

8  

15.8897

Total

2,736.1000

9  

Regression output

confidence interval

variables

coefficients

std. error

   t (df=8)

p-value

95% lower

95% upper

Intercept

75.1655

2.9048

25.876

5.34E-09

68.4670

81.8640

year

4.4713

0.3489

12.814

1.30E-06

3.6666

5.2759

Predicted values for: sales

95% Confidence Interval

95% Prediction Interval

year

Predicted

lower

upper

lower

upper

Leverage

6

101.993

98.846

105.141

92.277

111.709

0.117