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:

Real GDP

The measure of the value of economic output adjusted for price changes (inflation or deflation), reflecting the real quantity of goods and services produced.

Recession

A notable decrease in economic performance affecting the entire economy, persisting for an extended period beyond several months, is usually observed in metrics such as real GDP, real income, employment, industrial production, and wholesale-retail sales.

Unemployment Insurance

A government program that provides financial assistance to eligible workers who lose their job through no fault of their own.

Animal Spirits

A term used to describe human emotions and psychological factors that drive consumer confidence and economic decision-making.