Salesperson
the General Manager of a Chain of Furniture Stores

question 104

Essay

Salesperson
The general manager of a chain of furniture stores believes that experience is the most important factor in determining the level of success of a salesperson.To examine this belief she records last month's sales (in $1,000s)and the years of experience of 10 randomly selected salespeople.These data are listed below.
$$\begin{array} { | c | c | c | } \hline \text { Ealesperson } & \text { Years of Experience } & \text { Eales } \\\hline 1 & 0 & 7 \\\hline 2 & 2 & 9 \\\hline 3 & 10 & 20 \\\hline 4 & 3 & 15 \\\hline 5 & 8 & 18 \\\hline 0 & 5 & 14 \\\hline 7 & 12& 20 \\\hline 8 &7 & 17 \\\hline 9 &20 & 30 \\\hline 10 & 15& 25 \\\hline\end{array}$$
-Conduct a test of the population coefficient of correlation to determine at the 5% significance level whether a linear relationship exists between years of experience and sales.

---

Definitions:

Capital Gains

The profit earned from the sale of an asset, such as stocks, bonds, or real estate, when the sale price exceeds the purchase price.

Marginal Tax Rates

are the rates at which the last dollar of a taxpayer’s income is taxed, indicating the percentage of tax applied to your income for each tax bracket in which you qualify.

Total Tax

The cumulative amount of taxes that an individual or entity is obligated to pay to the government, including federal, state, and local taxes.

Provincial Tax Brackets

The tiers of income ranges in Canadian provinces that determine the rate at which income is taxed, varying by province.