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The data on y = annual sales ($1,0005} for new customer accounts and x = number of years of experience for a sample of 10

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The data on y = annual sales ($1,0005} for new customer accounts and x = number of years of experience for a sample of 10 salespersons provided the estimated regression equation 3? = 80 + 4x. For these data, ; = 7, 2(x, ;)2 = 142, and s = 4.6098. (a) (b) it) Develop a 95% condence interval fer the mean annual sales (in thousands of dollars) for all salespersons with twelve years of experience. [Round your answers to two decimal places.) $ K i thousand to :1; r J thousand The company is considering hiring Tom Smart, a salesperson with twelve years of experience. Develop a 95% prediction interval of annual sales (in thousands of dollars) for Tom Smart. (Round your answers to two decimal places.) $ ) l thousand to $ , ] thousand Discuss the differences in your answers to parts (a) and (b). O The prediction interval is wider than the confidence interval, because there is more variability associated with predicting annual sales for one new salesperson with twelve years of experience than there is with estimating the mean annual sales for all salespersons with twelve years of experience. 0 The prediction interval is wider than the confidence interval, because you use a different critical value when developing a prediction of the annual sales for one new salesperson with twelve years of experience than when developing an estimate of the mean annual sales for all salespersons with twelve years of experience. O The prediction interval is wider than the confidence interval, because condence intervals are used to predict values of y for new observations corresponding to given values of x, and prediction intervals give an estimate of the mean value of y for a given value of x. O The confidence interval is wider than the prediction interval, because you use a different critical value when developing a prediction of the annual sales for one new salesperson with twelve years of experience than when developing an estimate of the mean annual sales for all salespersons with twelve years of experience. O The confidence interval is wider than the prediction interval, because there is less variability associated with predicting annual sales for one new salesperson with twelve years of experience than there is with estimating the mean annual sates for all salespersons with twelve years of experience

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