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A sales manager for a major pharmaceutical company analyzes last years sales dat

ID: 3294028 • Letter: A

Question

A sales manager for a major pharmaceutical company analyzes last years sales datn for her 96 sales representatives, grouping them by region (1 East Coast U.S 2sMid Westu.S ; 3eWest U.S ; 4e South us; 5=Canada 6-Rost of weld). She pots ales (in S100 against Region (1-6)and sees a trong nag tive coolation. She fits a regression to the data and finds Sales-10 25-102.7 Region The R2 is 70.5%. Writo a few so trosinterpret ng this mo del and dos ibng what she can conclude from this analysis. Click the icon to view the plot Choose the correct answer below. O A. The model is useful because the Region can be detormined from the total Sales. The negative slope indicates that Sales increased from Region 1 to Region6. O B. The model is useful because total Sales can be determined from the Region. The negative slope indicates that Sales decreased from Region 1 to Region 6. O C. The model is meaningless because the variable Sales is not quantitative. The slope makes no sense because Sales has no units. The boxplot comparisons D The model s meanin ess because the variable Region is not quantitative. The slope makes no sense because are fine, but the regression is meaningless. Region has no units. The boxplot comparisons are fine, but the regression is meaningless.

Explanation / Answer

Question-1-Option-D

This is because region is not quantitative and so should be divided in to dummy variables before regressing

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