Interpret Confidence and Prediction Intervals

question 21

Multiple Choice

Interpret confidence and prediction intervals.
-A sales manager was interested in determining if there is a relationship between
College GPA and sales performance (number of units sold in the previous month) among
Salespeople hired within the last year. The estimated regression equation fit to the data
Was found to be significant at α = 0.05. The 95% confidence interval for the number of
Units sold when GPA = 3.00 was determined to be 20.914 to 22.657. The correct
Interpretation is

• A) We can be 95% confident that the number of units sold per month by a particular salesperson with a college GPA of 3.00 is between 20.914 and 22.657 units.
• B) We can be 95% confident that the average number of units sold per month by salespersons with a college GPA of 3.00 is between 20.914 and 22.657 units.
• C) The number of units sold per month by a salesperson with a college GPA of 3.00 will be between 20.914 and 22.657 units 95% of the time.
• D)95% of the time the average number of units sold per month will be between 20.914 and 22.657 units.
• E) We can be 95% confident that each month between 20.914 and 22.657 units will be

---

Definitions:

Units of Output

A measurement of production, quantifying the total goods or services produced by a company or industry.

Productive

Having the ability or capacity to produce a significant amount or result, especially regarding economic goods or services.

Complementary Factors

Complementary factors in economics refer to goods or inputs that are used together in production or consumption, where an increase in demand for one leads to an increase in demand for the other.

White-collar Employment

Jobs that typically involve professional, managerial, or administrative work, often in an office setting, as opposed to blue-collar jobs that involve manual labor.