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, X Sales ($ thousands), Y Number of Contacts, X Sales ($ thousands), Y
14 24 23 30
12 14 48 90
20 28 50 85
16 30 55 120
46 80 50 110
1. Determine the regression equation.
2. Determine the estimated sales if 40 contacts are made.
3. Determine the standard error of estimate.
4. Suppose a large sample is selected (instead of just 10). About 95 percent of the predictions regarding sales would occur between what two values?
This solution includes step by step instructions which makes it really easy for any student to follow along. The solution first determines the regression equation and then determines the sales using that equation. It then estimates the standard error as well. The results are provided in Excel format.