A manager of a car dealership believes there is a relationship between the number of salespeople on duty and the number of cars sold. Suppose the following sample is used to develop a simple regression model to predict the number of cars sold by the number of salespeople. Week: Number of cars sold: Number of sales people: 1 79 6 2 64 6 3 49 4 4 23 2 5 52 3 Answer the following questions about this problem using the following Excel report. What is the value of r2 ? Explain what r2 is telling us about the data? What is the regression equation. How many cars would you expect to be sold if there are 5 salespeople? 7 salespeople? Which of your predictions would be considered most reliable? 5 or 7 and why? Summary output: Regression statistics: r 0.908942 R Squared Adjusted R Square 0.768233 Standard Error 9.963214 Observations 5 ANOVA: df SS MS F Significance F Regression 1 1415.403 1415.403 14.25874 0.03253 Residual 3 297.7969 99.26563 Total 4 1713.2 Coefficients Standard error T Stat P-Value Lower 95% Upper 95% Intercept 9.234375 12.51613 0.737798 0.514108 -30.5975 49.06629 X Variable 1 10.51563 2.784803 3.776075 0.03253 1.653139 19.37811
Added by Alan T.
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What is the value of r2? The value of r2 is given in the summary output as: **R Squared = 0.768233** Show more…
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Sri K.
A manager of a car dealership believes there is a relationship between the number of salespeople on duty and the number of cars sold. Suppose the following sample is used to develop a simple regression model to predict the number of cars sold by the number of salespeople. Make the process Number of Number of Week Cars sold Salespeople 1 79 6 2 64 6 3 49 4 4 23 2 5 52 3 6 59 5 a. Find the regression line to predict the number of cars sold using the number of salespeople. b. What is the meaning of A and B coefficients? c. Estimate what the number of cars sold will be if the company has nine sellers. d. If for this problem R = .89 and R2 = .79, explain in a complete sentence what each of the values means.
Adi S.
A manager of a car dealership believes there is a relationship between the number of salespeople on duty and the number of cars sold. Suppose the following sample is used to develop a simple regression model to predict the number of cars sold by the number of salespeople. Number of Number of Week Cars sold Salespeople 1 79 6 2 64 6 3 49 4 4 23 2 5 52 3 6 59 5 a. Find the regression line to predict the number of cars sold using the number of salespeople. b. What is the meaning of A and B coefficients? c. Estimate what the number of cars sold will be if the company has nine sellers. d. If for this problem R = .89 and R2 = .79, explain in a complete sentence what each of the values means.
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