A Manager Wishes to Determine the Relationship Between the Number

question 50

Multiple Choice

A manager wishes to determine the relationship between the number of years her sales representatives havebeen employed by the firm and their amount of sales (in thousands of dollars) per month. Find the equation ofthe regression line for the given data. What would be the predicted sales if the sales representative wasemployed by the firm for 30 years Is this reasonable? Why or why not? Round the regression line values to thenearest hundredth. $\begin{array}{l|c|c|c|c|c|c|c|c|c|}\text { Years employed, } \mathrm{x} & 2 & 3 & 10 & 7 & 8 & 15 & 3 & 1 & 11 \\\hline \text { Sales, } \mathrm{y} & 31 & 33 & 78 & 62 & 65 & 61 & 48 & 55 & 120\end{array}$

• A) \(\hat { y } = 3.53 \mathrm { x } + 37.92 ; \$ 143,820\); No; it is not reasonable. 30 years of employment is well outside the scope of the model.
• B) \(\hat { y } = 3.53 \mathrm { x } + 37.92 ; \$ 143,820 ;\) Yes, it is reasonable.
• C) \(\hat { y } = 3.53 \mathrm { x } - 37.92 ; \$ 67,980 ; \mathrm { No }\); it is not reasonable. 30 years of employment is well outside the scope of the model.
• D) \(\hat { y } = 3.53 \mathrm { x } - 37.92 ; \$ 67,980\); Yes; it is reasonable.

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Definitions:

Scale Models

Miniature representations of larger objects, often used for study, design, or as hobbies.

Medical Care

Services provided by healthcare professionals to prevent, diagnose, and treat illnesses, injuries, and other physical and mental impairments.

Medical Insurance

A form of insurance that covers the whole or part of the risk of a person incurring medical expenses.

Transductive Reasoning

A type of thinking typical in early childhood where children make inferences from specific instances to other specific instances.