A sales manager collected the following data on x = years of experience and y = annual sales ($1,000s). The estimated regression equation for these data is 9 = 81 + 4x. Years of Annual Sales Salesperson Experience ($1,000s) 1 1 80 2 3 97 3 4 102 4 102 5 6 103 6 8 101 7 10 119 B 10 123 9 11 127 10 (a) Compute SST, SSR, and SSE. SST= SSR= 13 136 SSE= (b) Compute the coefficient of determination (Round your answer to three decimal places.) P = Comment on the goodness of fit. (For purposes of this exercise, consider a proportion large if it is at least 0.55.) The least squares line did not provide a good fit as a large proportion of the variability in y has been explained by the least squares line. The least squares line provided a good fit as a small proportion of the variability in y has been explained by the least squares line. The least squares line provided a good fit as a large proportion of the variability in y has been explained by the least squares line. O The least squares line did not provide a good fit as a small proportion of the variability In y has been explained by the least squares line. (c) What is the value of the sample correlation coefficient? (Round your answer to three decimal places.)
A sales manager collected the following data on x = years of experience and y = annual sales ($1,000s). The estimated regression equation for these data is 9 = 81 + 4x. Years of Annual Sales Salesperson Experience ($1,000s) 1 1 80 2 3 97 3 4 102 4 102 5 6 103 6 8 101 7 10 119 B 10 123 9 11 127 10 (a) Compute SST, SSR, and SSE. SST= SSR= 13 136 SSE= (b) Compute the coefficient of determination (Round your answer to three decimal places.) P = Comment on the goodness of fit. (For purposes of this exercise, consider a proportion large if it is at least 0.55.) The least squares line did not provide a good fit as a large proportion of the variability in y has been explained by the least squares line. The least squares line provided a good fit as a small proportion of the variability in y has been explained by the least squares line. The least squares line provided a good fit as a large proportion of the variability in y has been explained by the least squares line. O The least squares line did not provide a good fit as a small proportion of the variability In y has been explained by the least squares line. (c) What is the value of the sample correlation coefficient? (Round your answer to three decimal places.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Transcribed Image Text:A sales manager collected the following data on x = years of experience and y = annual sales ($1,000s). The estimated regression equation for these data is 9 = 81 + 4x.
Years of
Annual Sales
Salesperson
Experience
($1,000s)
1
1
80
2
3
97
3
4
102
4
102
5
6
103
6
8
101
7
10
119
B
10
123
9
11
127
10
(a) Compute SST, SSR, and SSE.
SST=
SSR=
13
136
SSE=
(b) Compute the coefficient of determination (Round your answer to three decimal places.)
P =
Comment on the goodness of fit. (For purposes of this exercise, consider a proportion large if it is at least 0.55.)
The least squares line did not provide a good fit as a large proportion of the variability in y has been explained by the least squares line.
The least squares line provided a good fit as a small proportion of the variability in y has been explained by the least squares line.
The least squares line provided a good fit as a large proportion of the variability in y has been explained by the least squares line.
O The least squares line did not provide a good fit as a small proportion of the variability In y has been explained by the least squares line.
(c) What is the value of the sample correlation coefficient? (Round your answer to three decimal places.)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education