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 R1 000s) and the years of experience of 10 randomly selected salespeople. These data are listed in the table below:
Table
|
Salesperson
|
Year of Experience
|
Sales
|
|
1
|
0
|
7
|
|
2
|
2
|
9
|
|
3
|
10
|
20
|
|
4
|
3
|
15
|
|
5
|
8
|
18
|
|
6
|
5
|
14
|
|
7
|
12
|
20
|
|
8
|
7
|
17
|
|
9
|
20
|
30
|
|
10
|
15
|
25
|
|
1.1
|
Identify the independent and the dependent variables.
|
|
|
1.2
|
Construct a scatter plot to portray the data in table 2.
|
|
|
1.3
|
Calculate the coefficient of correlation.
|
|
|
1.4
|
Interpret your findings in (2.3) above.
|
|
|
1.5
|
Use the least-square method to determine the regression equation.
|
|
|
1.6
|
Explain what the coefficients (the slope and the intercept) of the equation in (2.5) tell you about the relationship between years of experience and monthly sales
|
|
1.7 Estimate the monthly sales for a salesperson with 16 years of experience.