Marketer 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42

Hours of Training 3 6 4 3 8 2 2 10 5 5 8 3 9 5 3 7 12 6 4 4 8 6 9 10 4 3 12 9 5 7 6 3 8 6 7 3 11 10 5 5 3 4

Sales Revenue 144794 129114 95357 153273 176268 123565 135628 127030 116914 117950 132729 134596 148548 76518 84259 184802 152626 124053 140655 80388 155205 163042 141808 168529 100889 105934 221123 220641 92381 134722 125943 126258 113816 143852 127514 110025 147734 121633 108383 110440 118924 136395

Inthisassignmentyouarerequiredtousetherelevantbuilt-infunctioninExceltoestimatea simplelinearregressionmodel.Asessentialpreparationforthisassignmentyoushouldhave workedthroughthecomputingexercisesets.

Supposethemanagersofatelemarketingcompanyareinterestedintherelationshipbetween the followingtwo variables:

Thesalesrevenueindollars(sayY)generatedbyatelemarketerinhis/herfirst year of completed service.

Thenumberofhoursofpreliminarytrainingprovidedtoanewtelemarketer(say X).

Usingarandomsampleofdatafor42telemarketersthatrecentlycompletedtheirfirstyearof servicewiththecompany,youarerequiredtoestimateaconditionalexpectationfunctionof the followingform byleast squares regressionusingthe Microsoft Excel regression tool.

E(Y|X)= b1+ b2X

To generateyour own personalised data setyou will need to follow thesteps below.

1.Openthe'AssignmentDataGenerationFile'attachmentinthe'Computing Assignment'linkonthelefthandmenuofthevUWSsiteforthisunit.IftheExcel fileopensin'ProtectedView',justclickon'EnableEditing'beforeundertakingthe followingsteps.

2.OnceyouhaveopenedtheDataGenerationFileinExcel,youshouldenterthelast fourdigitsofyourstudentnumberintherangeofcellsE2toH2,i.e.withthefifth digitinE2,thesixthdigitinF2,theseventhdigitinG2,andtheeighthdigitinH2. ThiswillgenerateyourpersonaliseddatasetintherangeA1:C43(withtheheadings 'Marketer','HoursofTraining'and'SalesRevenue'inA1,B1andC1,respectively). Notethatthemarkerofyourassignmentwillbeabletocheckthatyouusethecorrect data set correspondingtoyour student number.

3.OpenanewnewExcelworkbookandcopytherangeA1:C43containingyourdataset intheDataGenerationFiletothenewworkbook.ClosetheDataGenerationFile, thengiveyournewExcelworkbookanameandsaveitonyourcomputerorstorage medium(memorystick,etc.).Apartfromenteringthelastfourdigitsofyourstudent numberandcopyingyourgenerateddata,youwillnotbeabletoedit theData Generation File.

Seenext page for required assignment tasks

Required Assignment Tasks

Each student is required to submitin MS Word document format(at the end of Week 13 to his/hertutor):

Main Report: Answers toparts (b) to (e).

Annexure: Asoftcopyofhis/herpart(a)(seebelow)tabulated regressionresultsinincludingacopy ofthedatasetusedandthesummaryresultstablefromusingthebuilt-inregression toolinExcel.Studentsarenotrequiredtosubmitanylistofresiduals,residualplots orlinefit plots.

Youmustsubmityourassignmentwithanassignmentcoversheet. Theassignmentcoversheetisalsoavailableinthe 'ComputingAssignment'link on the unit webpage.

(a)UsethebuiltregressiontoolinExcelandyourpersonalizeddataset(seeabove)to estimatethesimpleregressionofsalesrevenueindollars(Y)generatedbya telemarketerinhis/herfirstyearofcompletedserviceonthenumberofhoursof preliminarytrainingprovided to anew telemarketer (X).(2 marks)

Whenansweringthefollowingquestions,assumealltheassumptionsoftheneoclassical (stochasticregressor)simpleregression(NSR)modelwithmultivariatenormallydistributed random disturbancesare satisfied.

(b)Clearlystateyourestimatedconditionalexpectationfunction(sampleregressionline).

Notethatyoudonotneedtoestimateyourequationmanually,butratheryoushould simplywritedownyoursampleregressionlineusingtheestimatedinterceptand coefficient of Xgiven inyoursummaryregressionoutput from Excel.(1 mark)

(c)With referenceto your estimated equation, calculate (using a calculator) a 90%

confidenceintervalforthecoefficientofX(i.e.2) inthemodel. Inperformingthis calculation,usetherelevantestimatedstandarderroroftheestimatorofthe coefficientof XgiveninyoursummaryExcel regressionoutput.Givean interpretation of theconfidenceintervalyoucalculate.(2 marks)

(d)Againwithreferencetoyourestimatedequation,performatestofthenullhypothesis thatthecoefficientofnumberofhoursofpreliminarytrainingprovidedtoa telemarketer(2)equalszeroagainstthealternativethatitisgreaterthanzero,using

the

= 0.05

(i.e. 5%) levelofsignificance. In presentingyouranswertothis

questionyouarerequiredtousethe6-stephypothesistestingproceduregiveninthe unitsummarylecturenotes.Againinansweringthisquestion,youshouldusethe relevantestimatedstandarderroroftheestimatorofthecoefficientofXgiveninyour summaryExcel regression output.(3 marks)

Giveaninterpretationoftherealizedcoefficientofdeterminationvalue(r2)givenin yoursummaryExcel regression output.