Suppose that the relationship between sales (Y, in $000) and number of salespeople (X) is represented by the following regression equation:

Y = 105.2 + 35.8X

-Refer to Exhibit 13.3. What will be the average contribution to sales of one additional salesperson?
A) $35.80
B) $141,000
C) $35,800
D) $141.00
E) More information is needed to answer this question.

Question

Suppose that the relationship between sales (Y, in $000) and number of salespeople (X) is represented by the following regression equation:

Y = 105.2 + 35.8X

-Refer to Exhibit 13.3. What will be the average contribution to sales of one additional salesperson?
A) $35.80
B) $141,000
C) $35,800
D) $141.00
E) More information is needed to answer this question.

Quizplus · Accepted Answer

The coefficient of X in the regression equation is 35.8, which represents the additional contribution to sales for each additional salesperson. Therefore, the average contribution to sales of one additional salesperson is $35,800.

Suppose That the Relationship Between Sales (Y, in $000) and Number