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Statistical calculations to determine if to fire salesperson

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A salesperson in a small appliance store sells the following number of air conditioners each month (starting in January) throughout the year. 3, 5, 5, 6, 12, 17, 14, 9, 4, 2, 1, 1. The store owner did a few calculations using one of his statistics books and concluded the salesperson should be fired. Using the knowledge you have gained so far, do you agree or disagree with the storeowner and why. Be sure to justify your decision. Be sure you consider such things as distributions, averages, standard deviations, and the like.

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Solution Preview

Let's start by looking at the pattern of sales over the year. In the winter months (assuming the salesperson lives in a region that has snowy winters and hot summers), he sells very few air conditioners (3, 5, 5) per month. In April-August, when we would expect the weather to be hot, he sells quite a few, with his highest sales in the month of June. Then when the weather starts to cool off, his sales go back down (4, 2, 1, 1 ...

Solution Summary

The expert examines the statistical calculations use to determine if a salesperson should be fired or not.

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