Use the built regression tool in Excel and your personalized data set (see above) to estimate the simple regression of sales revenue in dollars (Y) generated by a telemarketer in his/her first year of completed service on the number of hours of preliminary training provided to a new telemarketer (X).

When answering the following questions, assume all the assumptions of the neoclassical (stochastic regressor) simple regression (NSR) model with multivariate normally distributed random disturbances are satisfied.

b. Clearly state your estimated conditional expectation function (sample regression line). Note that you do not need to estimate your equation manually, but rather you should simply write down your sample regression line using the estimated intercept and coefficient of X given in your summary regression output from Excel.

c. With reference to your estimated equation, calculate (using a calculator) a 90% confidence interval for the coefficient of X (i.e.β2 ) in the model. In performing this calculation, use the relevant estimated standard error of the estimator of the coefficient of X given in your summary Excel regression output. Give an interpretation of the confidence interval you calculate.

d. Again with reference to your estimated equation, perform a test of the null hypothesis that the coefficient of number of hours of preliminary training provided to a telemarketer ( β2 ) equals zero against the alternative that it is greater than zero, using the α = 0.05 (i.e. 5%) level of significance. In presenting your answer to this question you are required to use the 6-step hypothesis testing procedure given in the unit summary lecture notes. Again in answering this question, you should use the relevant estimated standard error of the estimator of the coefficient of X given in your summary Excel regression output.

e. Give an interpretation of the realized coefficient of determination value ( r 2 ) given in your summary Excel regression output.

Marketer	Hours of Training (x)	Sales Revenue (y)
1	3	139096
2	6	140835
3	4	106518
4	3	145455
5	8	185201
6	2	118674
7	2	127721
8	10	157273
9	5	127185
10	5	127963
11	8	152546
12	3	131447
13	9	168911
14	5	96889
15	3	93694
16	7	187102
17	12	185469
18	6	137039
19	4	140491
20	4	95291
21	8	169404
22	6	166281
23	9	163856
24	10	188397
25	4	110667
26	3	109951
27	12	236842
28	9	222981
29	5	108786
30	7	149542
31	6	138458
32	3	125194
33	8	138362
34	6	151889
35	7	144136
36	3	113019
37	11	177301
38	10	153225
39	5	120787
40	5	122330
41	3	119693
42	4	137296

Answer rating: 100% (QA)

b The estimated conditional expectation function sample regression line can be written as Y 2500 40X ... View the full answer