Calculation Of The Range Of Plausible Values For Correlation Between 1st And 2nd Year Sales


As part of the first-year evaluation for new salespeople, Ada, the sales manager for Umbrella, estimates the second-year sales for each salesperson based on his or her sales for the first year. Using data from company records going back several years, she constructs the following scatter plot:

a). Indicate a range of plausible values for the correlation between first- and second-year sales. Note: The acceptable answers are based solely on what you know about the concept of correlation; you need not calculate anything for this part.
b). Ada fits the least-squares line y = 18.22 + 1.66x where x = first-year sales and y is second-year sales. Interpret both the slope and the y-intercept in the context of the
problem of estimating second-year sales.
c). What is a potential problem, from your perspective, with using the least-squares line to estimate sales and evaluate employees? Note: I expect answers will vary quite a bit on this part.



The question belongs to Statistics and it discusses about calculating the range of plausible values for correlation between 1st and 2nd year sales.

Total Word Count 136

Download Full Solution


  • HWA

    this is a very good website

  • HWA

    I have 50 questions for the same test your page is showing only 28

  • HWA

    hi can you please help or guide me to answer my assignments. thanks

  • HWA

    hi can anyone help or guide me to my assignments. thanks

  • HWA

  • HWA

    This solution is perfect ...thanks

  • HWA

    Hello Allison,I love the 2nd image that you did! I also, had never heard of SumoPaint, is something that I will have to exolpre a bit! I understand completely the 52 (or so) youtube videos that you probably watched. Sometimes they have what you want, sometimes they don't! However, it is always satisfying when you are able to produce something that you have taught yourself. Great job!Debra 0 likes

  • HWA

    Perfect bank of solution. 

  • HWA

    great !

  • HWA
    Paul Brandon-Fritzius

    thanks for the quick response. the solution looks good. :)

  • HWA
    tina Johnson

    thnx for the answer. it was perfect. just the way i wanted it. 

  • HWA

    works fine.