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Solution: Sales: Insurance Dorothy Kelly sells life insurance for the Prudence Insurance Company. She sells insurance by making visits to her clients’

Question: Sales: Insurance Dorothy Kelly sells life insurance for the Prudence Insurance Company. She sells insurance by making visits to her clients’ homes. Dorothy believes that the number of sales should depend, to some degree, on the number of visits made. For the past several years, she has kept careful records of the number of visits (x) she made each week and the number of people (y) who bought insurance that week. For a random sample of 15 such weeks, the x and y values follow:

x y
11 3
19 11
16 8
13 5
28 8
5 2
20 5
14 6
22 8
7 3
15 5
29 10
8 6
25 10
16 7
  1. Draw a scatter diagram.
  2. Find the equation of the least-squares line, and plot the line on the scatter diagram of part (a).
  3. Find the correlation coefficient \(r\). Find the coefficient of determination \(r^{2}\). What percentage of variation in \(y\) is explained by the variation in \(x\) and the least squares model?
  4. During a week in which Dorothy makes 18 visits, how many people do you predict will buy insurance from her?

\(\Sigma x=248 ; \Sigma y=97 ; \Sigma x^{2}=4856 ; \Sigma y^{2}=731 ; \sum x y=1825\)

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Solution: The downloadable solution consists of 4 pages
Deliverable: Word Document


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