1. Mr, James McWhinney, president of Daniel-James Financial services, believes there is a relationship between the number of client contacts and the dollar amount of sales. To document this assertion, Mr. McWhinney gathered the following sample information. The X column indicates the number of client contacts last month, and the Y column shows the value of sales ($ thousands) last month for each client sampled.
NUMBER OF CONTACTS, SALES ($thousands), NUMBER OF CONTACTS,
X Y X
14 24 23
12 14 48
20 28 50
16 30 55
46 80 50
a. How do i determine the regression equation?
b. How do I determine the estimated sales if 40 contacts are made?
c. How do I determine the standard error of estimate?
d. Suppose a large sample is selected (instead of just 10). About 95 percent of the predictions regarding sales would occur between what two values?
2. The following table lists the annual amounts of glass cullet produced by kimble Glass Works, Inc.
YEAR CODESCRAP (tons)
1999 1 2.0
2000 2 4.0
2001 3 3.0
2002 4 5.0
2003 5 6.0
How do I determine the least squares trend equation? And how do I estimate the amount of scrap for the year 2005?
The solution shows how to estimate a regression for the data given for Daniel-James Financial services.