16:06 6) A textbook the number of campus visits to decision makers made by their

Question

16:06 6) A textbook the number of campus visits to decision makers made by their sales force. A sampling of the number of made and the number of books sold is shown in the following table. What percent in the variation of Books Sold is explained by the value of the variable Sales Calls Made? In order to realize the sale of 700 books, how many sales calls will the sales representative have to make? publisher for books used in business schools believes that the number of books sold is related to sales calls the variable NUMBER OF SALES CALLS MADE 25 15 25 45 35 25 25 35 25 15 | NUMBER OF BOOKS SOLD 375 250 525 825 550 575 550 575 400 400 5550.986 163 Books Sold 104.605 Correlation coefficient 748

Explanation / Answer

Let the linear regression equation be :

Y = A + B.X

Where,

Y ( Dependent variable ) = Number of books sold

X ( Independent variable ) = Number of sales calls made

A, B are constants

We place all the values as given for Number of sales calls made and number of books sold in 2 different columns in excel and apply the formula LINEST ( ) to obtain following values of A and B :

A = 104.605

B= 14.736

Therefore ,

Y = 104.605 + 14.736.X

Let number of sales calls to be made to sell 700 books = X1 and corresponding Y = 700

Therefore ,

700 = 104.605 + 14.736.X1

Or, 14.736.X1 = 700 – 104.605

Or, 14.736.X1 = 595.395

Or, X1 =40.404

Therefore number of sales calls to be made to sell 700 books will be 40.404 ( without rounding off )

THE SALES REPRESENTATIVE HAS TO MAKE 40.404 NUMBE ROF SALES CALLS

The correlation coefficient between above two sets of data is derived by using the function CORREL ( ) in excel .

Accordingly, Correlation coefficient( r) = 0.8650

Percent of variation explained = 100 x 0.7482 = 74.82 %

PERCENTAGE OF VARIATION EXPLAINED = 74.82 %

THE SALES REPRESENTATIVE HAS TO MAKE 40.404 NUMBE ROF SALES CALLS

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.