Question

‘ I got the quarterly figures of salesmen’s performance through yesterday and I thought I’d see if there is any connection between how far they travel and how many sales they make, so I put them through our computer package that does correlations, but I can’t make sense of the bits at all- could you interpret, please.’
The information enclosed with the memo is as follows:
Salesman Mileage(km) No. of Sales Time with Company(Months)
Smith 256 27 32
Adams 462 8 6
Williams 322 34 36
Green 211 25 28
Murphy 153 18 8
Evans 186 23 12
Newton 372 38 50
Sam 223 19 12

Regression equation for no. of sales on time with company is Y = 11.35 + 0.55X
Correlation coefficient: mileage and no. of sales = - 0.03. Regression equation for no. of sales on mileage is:
Y = 24.72 + 0.003X
i. Write notes to guide you in explaining to the sales manager what this information means, and how it should be interpreted in the light of the data.
ii. Calculate the coefficient of correlation and coefficient of determination of the time with the company and number of sales and interpret it

Answer 1

Broooooooooo Adam
Is loss