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At the .05 significance level is there a significant interaction between the number of sales calls and the miles driven? Significant or not significant ...... is no interaction or is interaction

Exercise 14-10 (LO14-1, L014-6) Cincinnati Paint Company sells quality brands of paints through hardware stores throughout the United States. The company maintains a large sales force whose job it is to call on existing customers as well as look for new business. The national sales manager is investigating the relationship between the number of sales calls made and the miles driven by the sales representative. Also, do the sales representatives who drive the most miles and make the most calls necessarily earn the most in sales commissions? To investigate, the vice president of sales selected a sample of 25 sales representatives and determined: The amount earned in commissions last month (Y The number of miles driven last month (X1) The number of sales calls made last month (X2) The information is reported below Commissions (5000) Commissions Calls Driven 139 132 144 142 142 142 138 139 144 134 135 137 146 Calls Driven 146 144 147 144 2,791 149 131 144 132 132 127 154 147 2,829 (S000) 3 2 3,290 3,103 2,122 2,371 2,226 2,731 3,351 2,289 3,449 3,114 3,342 2,842 2,625 2,121 2,219 3,463 3,209 2,287 2,848 2,690 2,933 2,671 2,988 23 25 43 20 4 Click heref

Answer 1

The step-by-step instructions to obtain Multiple Regression Output Using Minitab 17 * Store the variables Y, X1 X, andX^X2 in the C1, C2, C3, and C4 columns in the Minitab Worksheet. * Choose Stat → Regression → Regression → Fit Regres sion Model * Select the variable Y in to the Response box and then select the variables X1X, andX\X, in the continuous predictors box * Enter the value of α=0.05. xClick ok. Multiple Linear Regression Output:

Regression Analysis: Commissions versus Calls, Driven, X1X Analysis of Variance DF Adi SS Adi MS F-Value P-Value Regression 3 2099.17 699.72 39.02 0.000 3.44 0.078 2.5 0.128 1.74 0.201 Source 161.76 61.76 1 44.94 44.94 1 31.25 31.25 21 376.59 17.93 Drivern X1X2 Error Total 24 2475.76 Model Summary S R-sq R-sq(ad) 4.23470 84.7996 82.6296 R-sq(pred) 79.64% Coefficients Coef SE Coef T-Value P-Value 1631.93 0.067 Term Constant Calls Driven X1x2 VIF 1.86 0.078 78.78 1.58 0.128 881.50 -0.000556 0.000422 1.32 0.201 1168.53 -315 2.15 0.0941 1.16 0.0594 Regression Equation Commissions 3152.15 Calls 0.0941 Driven 0.000556 X1X2

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Step1 The null and alternative hypotheses are H, : not all (a β), 's are equal to zero. (ae)i # 0 Step2 The level of significance is α-005 Step3 If the test statistic 1S 005.121 If the p-value < α-0.05. We reject Ho Step4 The test statistic is MSTR MSE 31.25 17.93 1.742889 F 1.742889 Step5 Since, the p-value is 0.201 > α-0.05. We do not reject the null hypothesis , Hence, we conclude that all ['sare equal to zero Hence, we conclude that there is not significant interaction between the number of sales calls and the miles driven