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 average sales be equal to when 10 salespeople are used?
A) $358,000
B) $463.20
C) $358.00
D) $463,200
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 average sales be equal to when 10 salespeople are used?
A) $358,000
B) $463.20
C) $358.00
D) $463,200
E) More information is needed to answer this question.

Quizplus · Accepted Answer

To find the average sales when 10 salespeople are used, we substitute X=10 in the regression equation:
Y = 105.2 + 35.8(10) = 463.2
Thus, the average sales will be $463,200 when 10 salespeople are used. The answer is D.

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