Problems

1) A sales manager collected the following data on annual sales and years of experience.

Salesperson 1 2 3 4 5 6 7 8 9 10
Years of experience 1 3 4 4 6 8 10 10 11 13
Annual sales ($1000) 80 97 92 102 103 111 119 123 117 136
  1. Develop a scatter diagram for these data and comment about nature of relation between Years of Experience and Annual Sales.
  2. Compute and interpret coefficient of correlation.
  3. Compute and interpret coefficient of determination.

2) The following data show the Nielsen television ratings and share data for the Major League Baseball World Series over a nine-year period (Associated Press, October 27, 2003).

Rating 19 17 17 14 16 12 15 12 13
Share 32 28 29 24 26 20 24 20 22
  1. Develop a scatter diagram with rating on the horizontal axis.
  2. What is the relationship between rating and share? Explain.
  3. Compute the correlation coefficient. What does this value tell us about the relationship between rating and share?