Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Quarterly Commission Prediction Model y = 0.04x, + 6.41X2 + 14.34X3 - 1527.47 x1 = base salary X2 = hours on phone this quarter X3
Quarterly Commission Prediction Model y = 0.04x, + 6.41X2 + 14.34X3 - 1527.47 x1 = base salary X2 = hours on phone this quarter X3 = months experience in workforce After ensuring that all residual plots are homoscedastic, you finally have a model you're happy with. Raquel takes a look and offers up some conclusions. What should you say in response to each? "Salaries are positively correlated with commissions. I should raise everyone's salaries, and in turn they'll all make more sales each quarter." "Nope. Remember, correlation does not imply causation." "Not quite. The model only makes predictions; we can't assume they will be accurate." "You're absolutely right!" "Not necessarily. You're forgetting about a lurking variable-number of clients."
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started