A sales manager collected the following data on annual sales for new customer accounts and the number of years of experience for a sample of 10 salespersor Years of Annual Sales Salesperson Experience...

Q5

Extracted text: A sales manager collected the following data on annual sales for new customer accounts and the number of years of experience for a sample of 10 salespersor Years of Annual Sales Salesperson Experience ($1000s) 1 1 80 2 2 89 3 3 99 4 118 5 136 6. 7 140 7 152 8 11 168 12 187 10 14 196 The data on y = annual sales ($1000s) for new customer accounts and x = number of years of experience for a sample of 10 salespersons provided the estimated regression equation ŷ = 79.14 + 8.56x. For these data i = 6.7, ) (x; – ) = 190.10, and s = 8.6531. %3D - a. Develop the 95% confidence interval for the mean annual sales ($1000s) for all salespersons with thirteen years of experience. ($ $ ) (to 2 decimals) b. The company is considering hiring Tom Smart, a salesperson with thirteen years of experience. Develop a 95% prediction interval of annual sales ($1000s) for Tom Smart. ($ 2$ ) (to 2 decimals) c. Discuss the differences in your answers to parts (a) and (b). As expected, the prediction interval is much wider than the confidence interval. This is due to the fact that it is more difficult to predict annual sales for one new salesperson with 13 years of experience than it is to estimate the mean annual sales for all salespersons with 13 years of experience. LO