A Company Keeps Extensive Records on Its New Salespeople on the Premise

question 96

Essay

A company keeps extensive records on its new salespeople on the premise that sales
should increase with experience. A random sample of seven new salespeople produced
the data on experience and sales shown in the table. $\begin{array}{c|c}\text { Months on Job } & \begin{array}{c}\text { Monthly Sales } \\y \text { (\$ thousands) }\end{array} \\\hline 2 & 2.4 \\4 & 7.0 \\8 & 11.3 \\12 & 15.0 \\1 & .8 \\5 & 3.7 \\9 & 12.0\end{array}$

Summary statistics yield $S S _ { x x } = 94.8571 , S S _ { x y } = 124.7571 , S S _ { y y } = 176.5171 , \bar { x } = 5.8571$ , and $\bar { y } = 7.4571$ . State the assumptions necessary for predicting the monthly sales based on the linear relationship with the months on the job.

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Definitions:

Iconic Memory

A type of visual sensory memory that holds a brief photographic image of a scene that has just been observed.

Recency Effect

The improvement in retention of information learned at the end of a task.

Memory

The cognitive process involving the encoding, storing, and retrieving of information.

Forgetting

The processes that prevent information from being retrieved from a memory store.