In exercise 7 a sales manager collected the following data on x=annual sales and y=years of experience. The estimated regression equation for these data is y= 80 + 4x.
Salesperson Years of Experience Annual Sales($1000s)
1 1 80
2 3 97
3 4 92
4 4 102
5 6 103
6 8 111
7 10 119
8 10 123
9 11 117
10 13 136
1) Compute SST, SSR, SSE
2) Compute the coefficient of determination r(squared) . Comment on the goodness of fit.
3) What is the value of the sample correlation coefficient?