The managers of a brokerage firm are interested in finding out if the number of
ID: 3130862 • Letter: T
Question
The managers of a brokerage firm are interested in finding out if the number of new clients a broker brings into the firm affects the sales generated by the broker. They sample 12 brokers and determine the number of new clients they have enrolled in the last year and their sales amounts in thousands of dollars. These data are presented in the table that follows.
Broker Clients Sales
1 27 $52
2 11 $37
3 42 $64
4 33 $55
5 15 $29
6 15 $34
7 25 $58
8 36 $59
9 28 $44
10 30 $48
11 17 $31
12 22 $38
Y = 17.6919 + (1.1186) (X) Referring to the above table, the prediction for the amount of sales (in $1,000s) for a person who brings 25 new clients into the firm is ________.
Explanation / Answer
sol)
The Regression equation is
y=a+bx
From Excel
Fitted Regression is
y=17.6919 + 1.1186(x)
when x=25
Then the predicted value is
y=17.6919 + 1.1186(25)
y= 45.66
SUMMARY OUTPUT Regression Statistics Multiple R 0.885802 R Square 0.784644 Adjusted R Square 0.763109 Standard Error 5.80405 Observations 12 ANOVA df SS MS F Significance F Regression 1 1227.38 1227.38 36.43484 0.000126 Residual 10 336.8699 33.68699 Total 11 1564.25 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Intercept 17.69187 4.941109 3.580547 0.005007 6.682393 28.70135 clients 1.118597 0.185317 6.036128 0.000126 0.705685 1.531508Related Questions
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