The sales manager of a company wants to evaluate the performance of the company’s sales representatives. Each representative is solely responsible for one sales territory and the manager thinks it is reasonable to measure performance by using the yearly sales (Sales) of the company’s product in the representative’s territory. Sales are in thousands of dollars.

The manager collects data on the following independent variables to predict annual sales: the number of months the sales rep has been employed by the company (Time); sales of the company’s product and competing products in the sales territory (MktPot) or market potential; dollar advertising expenditure in the territory (Adv) and the company’s average market share in the territory over the previous three years (Mktshare).

1.  Develop a multiple linear regression equation (MLR) equation to predict Sales.

2. The company is considering two candidates for promotion, Able and Baker. The chosen candidate will be the one whose sales performance exceeds expected sales by the largest dollar amount. Expected sales are predicted by the multiple regression equation.

Company sales in Able’s territory are 4,600. Able has 60 months with the company and works in a territory with the following characteristics: MktPot = 60,000; Adv = 4,000 and Mktshare = 9.0.

Company sales in Baker’s territory are 5,400. Baker has 72 months with the company and works in a territory with the following characteristics:  MktPot = 65,000; Adv = 4,600 and Mktshare = 9.4.

Your task is to recommend one of these candidates for promotion.

Compose an email- type response which includes (a) a statement of your task; (b) the methodology you employ and (c) your recommendation and the justification for your recommendation.

The email is to be on the order of 250 – 300 words. Attach supporting documentation.

		Module One Comprehensive Problem
		Sales	Time	MktPot	Adv	MktShare
		3669.88	43.1	74065.11	4582.88	2.51
		3473.95	108.13	58117.3	5539.78	5.51
		2295.1	13.82	21118.49	2950.38	10.91
		4675.56	186.18	68521.27	2243.07	8.27
		6125.96	161.79	57805.11	7747.08	9.15
		2134.94	8.94	37806.94	402.44	5.51
		5031.66	365.04	50935.26	3140.62	8.54
		3367.45	220.32	35602.08	2086.16	7.07
		6519.45	127.64	46176.77	8846.25	12.54
		4876.37	105.69	42053.24	5673.11	8.85
		2468.27	57.72	36829.71	2761.76	5.38
		2533.31	23.58	33612.67	1991.85	5.43
		2408.11	13.82	21412.79	1971.52	8.48
		2337.38	13.82	20416.87	1737.38	7.8
		4586.95	86.99	36272	10694.2	10.34
		2729.24	165.85	23093.26	8618.61	5.15
		3289.4	116.26	26878.59	7747.89	6.64
		2800.78	42.28	39571.96	4565.81	5.45
		3264.2	52.84	51866.15	6022.7	6.31
		3453.62	165.04	58749.82	3721.1	6.35
		1741.45	10.57	23990.82	860.97	7.37
		2035.75	13.82	25694.86	3571.51	8.39
		1578	8.13	23736.35	2845.5	5.15
		4167.44	58.54	34314.29	5060.11	12.88
		2799.97	21.14	22809.53	3552	9.14

Answer rating: 100% (QA)

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