You Run a Used Car Dealership and Want to Know

Essay

$\begin{array}{|c|c|}\hline \begin{array}{c}\text { Weekly } \\\text { compensation }\end{array} & \begin{array}{c}\text { Monthly } \\\text { sales }\end{array} \\\hline 545 & 33 \\\hline 604 & 41 \\\hline 628 & 63 \\\hline 382 & 20 \\\hline 267 & 18 \\\hline 570 & 72 \\\hline 563 & 49 \\\hline 389 & 42 \\\hline 567 & 65 \\\hline 528 & 50 \\\hline\end{array}$ You run a used car dealership and want to know if you are appropriately compensating your sales force, so you collect weekly compensation rates and counts of monthly sales with the intent of comparing them.
1)What is the research question?
2)What are the hypotheses?
3)What are the degrees of freedom for the statistical significance test?
4)What is the critical value for this test?
5)State the formal results of the test.
6)Should you compute a coefficient of determination? How do you know? If so, calculate it.
7)Regress sales on compensation, and report the formula for the regression line here.
8)State all appropriate conclusions.
9)If a salesperson was compensated 450, what would we expect sales to be?