Homework SourseThe following data set gives the type of company amount of s
The following data set gives the type of company, amount of sales in millions of dollars, and the number of employees hired for some companies. A study is interested in whether there is a relationship between amount of sales and the number of employees.
33000
State the independent variable.
type of company
sales in millions of dollars
number of employees hired
State the dependent variable.
type of company
sales in millions of dollars
number of employees hired
Use the JMP applet to find the regression equation and the correlation coefficient. (Round your answers to four decimal places.)
What do the regression plot and the correlation coefficient tell us about the relationship?
The regression plot does show a positive relationship between sales and number of employees while the correlation coefficient indicates a negative relationship.
Both the plot and the correlation coefficient indicate that there is not a relationship between sales and number of employees.
Both the plot and the correlation coefficient indicate that there is a positive relationship between sales and number of employees.
Both the plot and the correlation coefficient indicate that there is a negative relationship between sales and number of employees.
Find the average increase in the response variable when the explanatory variable increases by one unit. (Round your answers to four decimal places.)
State in the context of the problem what this means.
An increase of one employee is associated with a predicted increase of about 0.12 million dollars in sales.
An increase of 0.12 employee is associated with a predicted increase of one million dollars in sales.
An increase of one employee is associated with a predicted increase of about $0.12 in sales
.An increase of one employee is associated with a predicted increase of one dollar in sales.
How much in sales can be predicted if a company employed 70,000 people? (Round your answers to tow decimal places.)
_____ million dollars
| Type | Sales ($M) | # Employ | Type | Sales ($M) | # Employ |
|---|---|---|---|---|---|
| Computer | 855.1 | 7523 | Pharmaceutical | 969.2 | 3418 |
| Pharmaceutical | 5453.5 | 40929 | Pharmaceutical | 6698.4 | 34400 |
| Computer | 2153.7 | 8200 | Computer | 5956 | 56000 |
| Pharmaceutical | 6747 | 50816 | Pharmaceutical | 5903.7 | 42100 |
| Computer | 5284 | 12068 | Computer | 2959.3 | 31404 |
| Pharmaceutical | 9422 | 54100 | Pharmaceutical | 1198.3 | 8527 |
| Computer | 2876.1 | 9500 | Computer | 990.5 | 8578 |
| Computer | 709.3 | 5000 | Pharmaceutical | 3243 | 21300 |
| Computer | 2952.1 | 18000 | Computer | 1382.3 | 2900 |
| Computer | 784.7 | 4708 | Computer | 1014 | 9100 |
| Computer | 1324.3 | 13740 | Computer | 1769.2 | 10200 |
| Pharmaceutical | 4175.6 | 28200 | Computer | 1643.9 | 9548 |
| Computer | 11899 | 95000 | Pharmaceutical | 2916.3 | 20100 |
| Computer | 873.6 | 8200 | Computer | 3078.4 | 28334 |
| Pharmaceutical | 9844 | 83100 | Pharmaceutical | 4272 | 33000 |
Solution
State the independent variable.
number of employees hired
State the dependent variable.
type of company
Y = 50x + 152
r2 = 0.95
The regression plot does show a positive relationship between sales and number of employees while the correlation coefficient indicates a negative relationship.
An increase of one employee is associated with a predicted increase of about $0.12 in sales
