Question

2.Mr. James McWhinney, president of Daniel-James Financial Services, believes there is a relationship between the number of client contacts and the dollar amount of sales. To document this assertion, Mr. McWhinney gathered the following sample information. The x column indicates the number of client contacts last month and the y column shows the value of sales ($ thousands) last month for each client sampled.

Number of Contacts,X		Sales ($ thousands),y		Number of Contacts,x		Sales ($ thousands),y
14		24		23		30
12		14		48		90
20		28		50		85
16		30		55		120
46		80		50		110

a. Determine the regression equation.

b. Determine the estimated sales if 40 contacts are made.

Answer 1

Answer:

a)

b) y=-12.201+ 2.195X

= -12.201+ 2.195*40

=75.599