A Company That Employs a Large Number of Salespeople Is

question 25

Essay

A company that employs a large number of salespeople is interested in learning which of
the salespeople sell the most: those strictly on commission, those with a fixed salary, or
those with a reduced fixed salary plus a commission. The previous monthʹs records for a
sample of salespeople are inspected and the amount of sales (in dollars)is recorded for
each, as shown in the table. $\begin{array}{ccc}\text { Commissioned } & \text { Fixed Salary } & \text { Commission Plus Salary } \\\$ 450 & \$ 507 & \$ 492 \\\$ 425 & \$ 361 & \$ 492 \\\$ 450 & \$ 437 & \$ 470 \\\$ 483 & \$ 432 & \$ 439 \\\$ 466 & \$ 444 & \\\$ 467 & &\end{array}$
$\begin{array}{lrccc}\hline \text { ANALYSIS OF VARIANCE } & \text { DF } & \text { SS } & \text { MS } & \text { F } \\\text { SOURCE } & 2 & 4195 & 2097.7 & 3.17 \\\text { FACTOR } & 12 & 7945 & 662.1 & \\\text { ERROR TOTAL } & 14 & 12140 & & \\\hline\end{array}$

Test to determine if a difference exists in the mean sale amounts among the three compensation systems. Test using $\alpha = .025$ .

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Definitions:

Taste Buds

Sensory organs located on the tongue that allow us to experience tastes, such as sweet, salty, sour, bitter, and umami.

Taste Thresholds

The minimum amount of a substance required for its taste to be recognized.

Inner Ear

The innermost part of the ear, containing the cochlea, semicircular canals, and vestibular sacs.

Vestibular Sense

Involves the perception of balance and spatial orientation, facilitated by the inner ear.