Question

A manager wishes to determine whether there is a relationship between the number of years her sales representatives have been with the company and their average monthly sales. The table shows the years of service for each of her sales representatives and their average monthly sales (in thousands of dollars).

Compute the linear correlation coefficient between the two variables and determine whether a linear relation exists. A manager wishes to determine whether there is a relationship between the number of years her sales representatives have been with the company and their average monthly sales. The table shows the years of service for each of her sales representatives and their average monthly sales (in thousands of dollars). 1 | 11 64 129 Years with company, x| 2 | 3 | 10 | 7 | 8 | 15 | 3 Sales, y 40 42 87 71 | 74 70 57 O r=0.717; no linear relation exists Or=0.632; no linear relation exists Or=0.632; linear relation exists Or=0.717; linear relation exists

Answer 1

The statistic software output for this problem is:

Simple linear regression results: Dependent Variable: y Independent Variable: x y = 46.915751 +3.529304 x Sample size: 9 R (correlation coefficient) = 0.63207934 R-q=0.39952429 Estimate of error standard deviation: 22.062355 Parameter estimates: Parameter Estimate Std. Err. Alternative DF T-Stat P-value Intercept46.915751 13.150928 +0 7 3.5674858 0.0091 Slope 3.529304 1.6353706 + 0 7 2.1581066 0.0678