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 Sales Number of Sales
Contacts, ($ thousands), Contacts, ($ thousands),
X Y X Y
14 24 23 30
12 14 48 90
20 28 50 85
16 30 55 120
46 80 50 110
a. Determine the regression equation.
b. Determine the estimated sales if 40 contacts are made.
The solution gives the multiple regression analysis of the number of client contacts and the dollar amount of sales. The solution contain regression equation, slope, intercept, correlation, coefficient of determination and scatter diagram.