Module 4 Excel Assignment Linear Regression

The manager of a company that relies on traveling salespersons to sell the company's products wants to examine the relationship between sales and the amount of time a salesperson spends with each established customer who regularly orders the company's products. He or she believes that sales can be predicted by the amount of time a salesperson spends with a customer. The manager collects the data on 12 salespersons.

Sales ($ thousands)	Hours spent with customers
412	3.2
500	4.6
450	3.9
610	5.3
715	6.1
500	4.2
610	5.6
600	5.3
570	5.1
800	7.1
725	6.5
850	7.8

1. What is the predictor (independent) and response (dependent) variables for this problem?

1. Make a scatterplot for predicting sales from hours spent. Paste the scatter plot below.

1. Run regression analysis using excel with the data from the above table. Paste the regression output below and upload the excel file with your submission.

1. What is the regression equation for predicted Sales?

1. What would be the predicted Sales if the salesperson spent 5 hours with the customer?

1. The manager has decided to look at other factors related to each person's sales. Below is the new sales data with multiple factors (i.e. hours, quarterly bonus, and a percentage discount given to customers). Answer the two bullet point below.

Sales ($ thousands)	Hours spent with customers	Quarterly Bonus ($)	Discount Given to Customer (%)
412	3.2	100	5
500	4.6	150	3
450	3.9	95	12
610	5.3	300	5
715	6.1	575	2
500	4.2	167	5
610	5.6	290	10
600	5.3	300	7
570	5.1	195	30
800	7.1	500	17
725	6.5	500	25
850	7.8	525	10

• Run regression analysis using excel with the data from the above table. Paste the regression output below and upload the excel file with your submission.

• Which factors are good predictors of sales? Write a short paragraph explaining your answer.

Submit both the word and excel file in your submission.