Data Is Collected from 20 Sales People in Order to Verify

question 166

Multiple Choice

Data is collected from 20 sales people in order to verify that the more contacts made with potential
Clients, the greater the sales volume. The Excel printout is shown below.
The y-intercept in this instance suggests:

• A) for each additional contact made, the salesperson can anticipate an additional $193 in sales.
• B) for each additional contact made, the salesperson can anticipate a drop of $1983 in sales.
• C) when no contacts are made, the salesperson can anticipate sales of $7554.
• D) when no contacts are made, the salesperson can anticipate sales of $1983.
• E) when no contacts are made, the salesperson can anticipate negative sales - therefore the regression model doesn't make sense for no contacts.

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Definitions:

Purchase Price

The total cost that is paid to acquire an asset or service, often including additional fees and taxes beyond the sticker price.

Equity Method

An accounting technique used to record investments where the investor has significant influence but does not control the investee.

Net Income

The remaining earnings of a company after subtracting total expenses and taxes from its gross revenue.

Dividends

Payments made by a corporation to its shareholders, usually out of profits or reserves.