The managers of a brokerage firm are interested in finding out if the number of new clients a broker brings into the firm affects the sales generated by the broker. For the last year, the managers sampled 16 brokers and determined the number of new clients they enrolled during that year and their sales amounts in millions of dollars for that year. This data is presented in the table that follows. In your answers, sales should be left as a decimal as in the data table. It is not necessary to multiply by one million dollars. Perform a simple linear regression analysis of this data and answer the following questions. Suggestion: Read all of the questions before doing any analysis. Broker New Clients Sales 1 27 5.32 2 11 3.44 3 42 7.96 4 33 6.62 5 15 4.06 6 15 3.16 7 25 4.9 8 36 6.84 9 28 5.8 10 30 5.84 11 17 3.56 12 22 4.58 13 18 3.7 14 24 5.34 15 35 6.9 16 40 7.56 Prepare a plot of the residuals. Does this data meet the equal variance assumption? Explain. Prepare a normal probability plot of the residuals. Does this data meet the normality of error assumption? Explain.
The managers of a brokerage firm are interested in finding out if the number of new clients a broker brings into the firm affects the sales generated by the broker. For the last year, the managers sampled 16 brokers and determined the number of new clients they enrolled during that year and their sales amounts in millions of dollars for that year. This data is presented in the table that follows. In your answers, sales should be left as a decimal as in the data table. It is not necessary to multiply by one million dollars.
Perform a simple linear
|
Broker |
New Clients |
Sales |
|
1 |
27 |
5.32 |
|
2 |
11 |
3.44 |
|
3 |
42 |
7.96 |
|
4 |
33 |
6.62 |
|
5 |
15 |
4.06 |
|
6 |
15 |
3.16 |
|
7 |
25 |
4.9 |
|
8 |
36 |
6.84 |
|
9 |
28 |
5.8 |
|
10 |
30 |
5.84 |
|
11 |
17 |
3.56 |
|
12 |
22 |
4.58 |
|
13 |
18 |
3.7 |
|
14 |
24 |
5.34 |
|
15 |
35 |
6.9 |
|
16 |
40 |
7.56 |
Prepare a plot of the residuals. Does this data meet the equal variance assumption? Explain.
Prepare a normal
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