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

question 97

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 $\bar { y } = 7.4571$ . Calculate a $90 \%$ confidence interval for $E ( y )$ when $x = 5$ months. Assume $s = 1.577$ and the prediction equation is $\hat { y } = - .25 + 1.315 x$ .

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Definitions:

Supply Chain Performance

The measurement and assessment of the efficiency, effectiveness, and adaptability of supply chain activities and processes.

Transportation Cost

The expense incurred in moving goods or materials from one location to another.

Outbound Shipment

The process of sending goods from a warehouse or distribution center to their next destination, which could be another distribution center, a retail store, or the end customer.

Omni-Channel Retail

A seamless approach to retail that integrates the different methods of shopping available to consumers, such as online, in a physical store, or through a mobile device.