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Cincinnati Paint Company sells quality brands of paints through hardware stores throughout the United States. The company maintains a large sales force who call
Cincinnati Paint Company sells quality brands of paints through hardware stores throughout the United States. The company maintains a large sales force who call on existing customers and look for new business. The national sales manager is investigating the relationship between the number of sales calls made and the miles driven by the sales representative. Also, do the sales representatives who drive the most miles and make the most calls necessarily earn the most in sales commissions? To investigate, the vice president of sales selected a sample of 25 sales representatives and determined: The amount earned in commissions last month (y) The number of miles driven last month (x2) The number of sales calls made last month (x2) The information is reported below. Commissions Commissions ($000) Calls Driven ($000) Calls Driven 22 143 2,375 38 150 3,291 13 132 2,228 45 145 3,103 33 148 2,735 29 147 2,122 39 146 3,354 38 146 2,795 24 142 2,291 38 153 3,213 48 142 3,449 14 134 2,287 29 140 3,116 35 145 2,852 39 140 3,342 26 135 2,692 42 146 2,845 28 133 2,933 32 137 2,627 26 128 2,674 21 137 2,122 43 158 2,990 14 140 2,222 35 147 2,830 48 150 3,464 Develop a regression equation including an interaction term. (Negative amount should be indicated by a minus sign. Round your answers to 3 decimal places.) Commissions = Calls + Miles + Complete the following table. (Negative amounts should be indicated by a minus sign. Round your answers to 3 decimal places.) Predictor Constant Calls Miles Coefficient SE Coefficient t p-value X1X2 Compute the value of the test statistic corresponding to the interaction term. (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.) Value of the test statistic At the 0.05 significance level, is there a significant interaction between the number of sales calls and the miles driven? This is so we conclude that there
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