q2.

\fA statistical program is recommended. A sales manager collected the following data on x = years of experience and y = annual sales ($1,000s). The estimated regression equation for these data is y = 81 + 4x. Salesperson Years of Annual Sales Experience ($1,000s) 1 80 2 3 97 W 4 92 4 4 107 6 103 6 8 111 7 10 119 8 10 128 9 11 117 10 13 136Construct a residual plot. 16 12 o 3 o W W W E E E 1: -o -o '5! '53 '5! i) i) i) M M M 0 2 4 6 8 10 12 14 0 2 4 6 8 10 12 14 0 2 4 6 8 10 12 14 0 Years of Experience 0 Years of Experience (D 0 Years of Experience Residuals _15 n 1 1 n 1 I 0 2 4 6 8 10 12 14 0 Years of Experience (D (b) Do the assumptions about the error terms seem reasonable in light of the residual plot? 0 The plot suggests a generally horizontal band of residual points indicating that the error term assumptions do not appear reasonable. 0 The plot suggests a generally horizontal band of residual points indicating that the error term assumptions appear reasonable. 0 The plot suggests a funnel pattern in the residuals indicating that the error term assumptions appear reasonable. 0 The plot suggests a funnel pattern in the residuals indicating that the error term assumptions do not appear reasonable. 0 The plot suggests curvature in the residuals indicating that the error term assumptions appear reasonable