A Manager Wishes to Determine the Relationship Between the Number

question 32

Multiple Choice

A manager wishes to determine the relationship between the number of years the managerʹs salesrepresentatives have been with the company and their average monthly sales (in thousands of dollars) .Calculate the linear correlation coefficient. $$\begin{array} { l | c | c | c | c | c | c | c | c | c | } \text { Years with company, } x & 2 & 3 & 10 & 7 & 8 & 15 & 3 & 1 & 11 \\\hline \text { Sales, y } & 36 & 38 & 83 & 67 & 70 & 66 & 53 & 60 & 125\end{array}$$

• A) 0.632
• B) 0.561
• C) 0.717
• D) 0.791

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Definitions:

Fixed Cost

A business expense that remains constant regardless of the level of production or business activity, such as rent or salaries.

Variable Cost

Costs that change in proportion to the level of activity or volume of goods produced.

Volume of Business

The total amount of trade or transactions conducted by a company over a specified period, often measured in sales or units sold.

Attractive Location

pertains to a site or place with qualities that are appealing to businesses, investors, or residents, often due to factors like economic opportunities, natural beauty, or favorable conditions.