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A sales manager collected the following data on annual sales for new customer accounts and the number of years of experience for a sample of 10 salespersons. Years of Experience Annual Sales ($1,000) Salesperson 1 2 3 5 6 7 9 10 1 3 4 4 6 8 10 10 11 13 80 97 92 102 103 119 123 117 136
(a) Develop a scatter diagram for these data with years of experience as the independent variable. 150 140 130 120- 110- 100 90 80 70 60- Annual Sales ($1,000s) O Annual Sales ($1,000s) O 150 140 ● 2 130 120 110- 100- 90 80 ● 70 60 ● 2 4 6 Years of Experience 8 10 12 14 . 4 6 8 Years of Experience 10 12 14 150 140 ● 8 130 120 110- 100 90 80 Annual Sales ($1,000s) Annual Sales ($1,000s) 70 60 150 140 130 120 110 100- 90 80 70 60 ● 2 2 4 6 8 10 12 Years of Experience 4 6 8 Years of Experience 10 12 14 14
(b) Develop an estimated regression equation that can be used to predict annual sales (in $1,000s) given the years of experience. 9 = (c) Use the estimated regression equation to predict annual sales (in $1,000s) for a salesperson with 7 years of experience. thousand