A sales manager for a major pharmaceutical company analyzes last year’s sales data for 96 sales representatives, grouping them by region (1 = East Coast U.S.; 2 = Midwest U.S.; 3 = West U.S.; 4 = South U.S.; 5 = Canada; 6 = Rest of World). She plots Sales (in $1000) against Region (1–6) and sees a strong negative correlation:

She fits a regression to the data and finds

The R² is 70.5%.

Write a few sentences interpreting this model and describing what she can conclude from this analysis.

Transcribed Image Text:

1000 800 600 400 200 1 3 5 Region Total Sales $ 1000) 2. Sales 1002.5 – 102.7 Region.