Concept explainers
The ABC corporation is opening new retail sales outlets and they want to staff these stores with employees most likely to be successful at selling the products. To meet this goal, ABC decides to study the sales staff at existing stores to determine if intelligence and extroversion (i.e., a friendly and outgoing personality) predict sales performance of current employees. ABC's logic is that if intelligence and extroversion predicts sales performance, then a good strategy for new stores is to hire intelligent extroverts for the sales positions.
To conduct the study, all current retail sales employees at existing stores take psychological tests designed to measure intelligence and extroversion. Also, past sales performance data is checked for each employee. In the end, there are three scores for each sales person:
1. an intelligence score (on a scale of 50-low intelligence to 150-high intelligence),
2. an extroversion score (on a scale of 15-low extroversion to 30-high extroversion), and
3. sales performance expressed as the average dollar amount sold per week.
Sales Person |
Intelligence |
Extroversion |
$ Sales/Week |
1 |
89 |
21 |
2625 |
2 |
93 |
24 |
2700 |
3 |
91 |
21 |
3100 |
4 |
122 |
23 |
3150 |
5 |
115 |
27 |
3175 |
6 |
100 |
18 |
3100 |
7 |
98 |
19 |
2700 |
8 |
105 |
16 |
2475 |
9 |
112 |
23 |
3625 |
10 |
109 |
28 |
3525 |
11 |
130 |
20 |
3225 |
12 |
104 |
25 |
3450 |
13 |
104 |
20 |
2425 |
14 |
111 |
26 |
3025 |
15 |
97 |
28 |
3625 |
16 |
115 |
29 |
2750 |
17 |
113 |
25 |
3150 |
18 |
88 |
23 |
2600 |
19 |
108 |
19 |
2525 |
20 |
101 |
16 |
2650 |
Test 0.05 level of significance if intelligence and extroversion can be used to forecast the sale performance.
Determine the following:
R = ?
Intercept = ?
Intelligence = ?
Extrovesrsion = ?
MSRESIDUAL = ?
MSREGRESSION = ?
FRATIO = ?
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