Question
Colvard Office Products, a national producer and supplier of a line of office furniture products, including desks, chairs, bookcases, and filing cabinets, currently employs a
Colvard Office Products, a national producer and supplier of a line of office furniture products, including desks, chairs, bookcases, and filing cabinets, currently employs a sales force of 240 scattered across the United States. Richard Garrett, the vice president of marketing, has the primary responsibility for Colvard's sales and product distribution.
Each year, Colvard hires approximately 20-40 new salespeople, who are put through the company's excellent one-week sales training program. At the conclusion of the training program, they take a four-hour written test that measures what the employee has learned and also contains a section on general knowledge and a section designed to capture information about the employee's personality and character traits. A total score is produced along with three subscores.
After their first year of employment with Colvart, the new sales employees are evaluated by their regional sales managers, who submit performance ratings, based on a scale from 0 to 100, to Richard Garrett. Over the years, Garrett has noted that these performance ratings are highly correlated with the total score from the post-training test, and he has used the test results as an "early performance indicator" for new hires.
The personnel office at Colvard wants to cut costs by reducing the length of the four-hour sales training test. Garrett has been asked for his opinion about the value of the test and whether it would be reasonable to eliminate portions of it. His initial reaction was that the test was a proven indicator of future sales performance and that it should be continued as is, but he agreed to investigate whether a subset of the test might serve just as well.
Garrett had never before examined the relationship of the three individual subscores to sales performance. He was not sure how to predict sales performance from a subset of the three subscores or how to assess their predictive ability.
Garrett has provided you with a database containing total test scores and subscores for the most recent 120 salespeople hired along with their individual sales ratings after one year on the job. The following are the variables (and their definitions) contained in the database:
Rating | Sales performance rating for first year on the job |
SubScore1 | Subscore on the first section of the test |
SubScore2 | Subscore on the second section of the test |
SubScore3 | Subscore on the third section of the test |
TotalScore | Total of the three subscores of the test |
Garrett wants you to determine which subscores, alone or in combination, provide the best prediction of sales performance at the end of the first year. He also wants you to compare this approach to using just the total score and recommend how he should respond to the personnel office's request to shorten the test.
Write a one-page memo to Garrett that briefly summarizes the results of your analysis and recommendation. Keep in mind that Garrett is not familiar with any statistical jargon, so make sure you write the memo without it.
SubScore1 | SubScore2 | SubScore3 | TotalScore | |
75 | 50 | 51 | 54 | 155 |
56 | 40 | 34 | 45 | 119 |
86 | 48 | 56 | 64 | 168 |
63 | 46 | 43 | 51 | 140 |
80 | 50 | 57 | 56 | 163 |
63 | 45 | 46 | 49 | 140 |
61 | 44 | 59 | 56 | 159 |
66 | 48 | 49 | 53 | 150 |
61 | 43 | 38 | 42 | 123 |
45 | 30 | 29 | 41 | 100 |
43 | 43 | 37 | 31 | 111 |
50 | 55 | 46 | 45 | 146 |
56 | 40 | 50 | 43 | 133 |
68 | 47 | 50 | 48 | 145 |
47 | 39 | 47 | 40 | 126 |
54 | 46 | 42 | 46 | 134 |
80 | 49 | 67 | 59 | 175 |
63 | 52 | 48 | 44 | 144 |
43 | 24 | 28 | 38 | 90 |
77 | 59 | 65 | 59 | 183 |
86 | 47 | 46 | 55 | 148 |
70 | 59 | 60 | 46 | 165 |
66 | 62 | 55 | 33 | 150 |
84 | 71 | 63 | 59 | 193 |
52 | 44 | 42 | 47 | 133 |
59 | 42 | 40 | 49 | 131 |
75 | 48 | 57 | 57 | 162 |
61 | 40 | 42 | 49 | 131 |
61 | 46 | 44 | 45 | 135 |
52 | 51 | 54 | 38 | 143 |
98 | 63 | 64 | 77 | 204 |
61 | 46 | 50 | 38 | 134 |
86 | 58 | 53 | 54 | 165 |
52 | 46 | 45 | 39 | 130 |
52 | 44 | 42 | 42 | 128 |
77 | 60 | 71 | 62 | 193 |
75 | 50 | 58 | 58 | 166 |
75 | 53 | 51 | 51 | 155 |
73 | 47 | 46 | 59 | 152 |
59 | 76 | 76 | 33 | 185 |
73 | 59 | 49 | 57 | 165 |
70 | 64 | 54 | 54 | 172 |
75 | 49 | 49 | 53 | 151 |
77 | 58 | 57 | 51 | 166 |
68 | 38 | 38 | 64 | 140 |
54 | 49 | 56 | 36 | 141 |
73 | 46 | 32 | 55 | 133 |
54 | 43 | 49 | 40 | 132 |
75 | 71 | 58 | 50 | 179 |
52 | 45 | 49 | 56 | 150 |
47 | 42 | 40 | 46 | 128 |
66 | 56 | 59 | 46 | 161 |
45 | 45 | 58 | 44 | 147 |
93 | 62 | 68 | 60 | 190 |
77 | 69 | 66 | 49 | 184 |
98 | 74 | 73 | 57 | 204 |
68 | 58 | 56 | 50 | 164 |
61 | 46 | 35 | 53 | 134 |
80 | 58 | 55 | 55 | 168 |
47 | 51 | 48 | 37 | 136 |
54 | 46 | 41 | 43 | 130 |
93 | 65 | 71 | 64 | 200 |
66 | 43 | 48 | 51 | 142 |
80 | 72 | 73 | 54 | 199 |
75 | 52 | 48 | 52 | 152 |
50 | 48 | 47 | 42 | 137 |
61 | 56 | 47 | 42 | 145 |
86 | 54 | 53 | 60 | 167 |
50 | 44 | 40 | 33 | 117 |
82 | 61 | 72 | 63 | 196 |
75 | 51 | 66 | 53 | 170 |
52 | 33 | 37 | 40 | 110 |
38 | 34 | 34 | 27 | 95 |
54 | 37 | 30 | 35 | 102 |
47 | 35 | 40 | 46 | 121 |
86 | 62 | 60 | 64 | 186 |
56 | 45 | 46 | 54 | 145 |
68 | 46 | 52 | 55 | 153 |
59 | 46 | 60 | 48 | 154 |
56 | 34 | 35 | 53 | 122 |
45 | 44 | 38 | 40 | 122 |
68 | 66 | 57 | 47 | 170 |
63 | 40 | 34 | 54 | 128 |
47 | 57 | 54 | 36 | 147 |
75 | 60 | 58 | 54 | 172 |
66 | 44 | 47 | 60 | 151 |
89 | 58 | 55 | 64 | 177 |
73 | 52 | 54 | 51 | 157 |
75 | 47 | 58 | 61 | 166 |
59 | 50 | 50 | 50 | 150 |
66 | 62 | 60 | 50 | 172 |
47 | 45 | 38 | 36 | 119 |
54 | 64 | 55 | 36 | 155 |
68 | 52 | 42 | 56 | 150 |
91 | 56 | 65 | 65 | 186 |
56 | 59 | 52 | 49 | 160 |
61 | 59 | 59 | 44 | 162 |
96 | 63 | 66 | 64 | 193 |
63 | 48 | 45 | 47 | 140 |
75 | 60 | 70 | 51 | 181 |
54 | 47 | 56 | 53 | 156 |
96 | 59 | 66 | 72 | 197 |
59 | 59 | 53 | 33 | 145 |
93 | 57 | 54 | 68 | 179 |
56 | 47 | 50 | 53 | 150 |
61 | 45 | 28 | 54 | 127 |
59 | 51 | 38 | 48 | 137 |
54 | 50 | 43 | 44 | 137 |
84 | 65 | 65 | 49 | 179 |
40 | 38 | 43 | 32 | 113 |
93 | 50 | 56 | 64 | 170 |
73 | 50 | 53 | 64 | 167 |
70 | 59 | 56 | 58 | 173 |
63 | 38 | 46 | 51 | 135 |
73 | 39 | 44 | 58 | 141 |
59 | 50 | 48 | 45 | 143 |
66 | 54 | 54 | 41 | 149 |
63 | 55 | 46 | 50 | 151 |
54 | 43 | 39 | 38 | 120 |
54 | 47 | 44 | 50 | 141 |
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