Exhibit 20.2 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 20.2.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

Quizplus · Accepted Answer

The coefficient of X, 35.8, represents the change in Y for each unit change in X. Therefore, the average contribution to sales of one additional salesperson is $35,800 (35.8 x 1000).