Question
can someone help me understand this problem The managers of a brokerage firm are interested in finding out if the number of new clients a
can someone help me understand this problem
The managers of a brokerage firm are interested in finding out if the number of new clients a broker brings into the firm affects the sales generated by the broker. They sample 12 brokers and determine the number of new clients they have enrolled in the last year and their sales amounts in thousands of dollars. These data are presented in the table that follows.
New
Broker ClientsSales
12752
21137
34264
43355
51529
61534
72558
83659
92844
103048
111731
122238
a. Set up a scatter plot with the dependent variable (Sales) on the vertical axis and independent variable (Clients) on the horizontal axis.
b. What is the least squares estimate of the slope from the regression?
c. Is the estimate of the slope significant at the 95% confidence level? Explain.
d. What does the slope estimate mean in relation to the problem facing the brokerage firm?
e. What is the regression estimate of the Y-intercept?
f. Is the estimate of the slope for the Y-intercept significant at the 95% confidence level? Explain.
g. What does the estimate of the Y-intercept mean in relation to the problem facing the brokerage firm?
h. How much in sales (in $1,000s) does the regression predict for a broker who brings 25 new clients into the firm?
i. What does the model predict for the case where the broker brings in 35 new clients?
j. What percentage of the total variation in sales generated can be explained by the number of new clients brought in?
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