Explore BrainMass

Regression and Hypothesis

The director of an investing group believes that the sales generated by a broker is related to the number of new clients a broker brings to the firm. The director believes that a linear regression model would help in the forecasting of expected sales from the brokers. To build the model the director takes a random sample of 12 brokers and gets the results as shown in the attached file.
1. What is the independent variable and the dependent variable?
2. What is the forecasting equation derived from the Excel data?
3. What is the null and alternative hypotheses being tested for the independent variable?
4. Using the t statistic method can you reject the null hypothesis at the 5% level of significance?
5. What is the estimated sales revenue of a broker who recruits 40 new clients?
6.What percent of the estimated sales revenue can be explained by the number of new clients a broker brings to the firm?