Math Problem Statement
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
ŷ = 81 + 4x.
SalespersonYears of ExperienceAnnual Sales ($1,000s)
1
1
80
2
3
97
3
4
97
4
4
102
5
6
103
6
8
111
7
10
119
8
10
128
9
11
117
10
13
136
(a)
Compute SST, SSR, and SSE.
SST=SSR=SSE=
(b)
Compute the coefficient of determination
r2.
(Round your answer to three decimal places.)
r2
=
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 provided 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 did not provide a good fit as a small proportion of the variability in y has been explained by the least squares line.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.
(c)
What is the value of the sample correlation coefficient? (Round your answer to three decimal places.)
Solution
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Math Problem Analysis
Mathematical Concepts
Linear Regression
Statistics
Correlation
Sum of Squares
Formulas
SST = Σ(y_i - ȳ)²
SSR = Σ(ŷ_i - ȳ)²
SSE = Σ(y_i - ŷ_i)²
r² = SSR / SST
r = √r²
Theorems
Least Squares Regression
Coefficient of Determination
Sample Correlation Coefficient
Suitable Grade Level
Undergraduate Level, Statistics or Business Analytics
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