In 2020, all salesman had average sales of $500,000 with a standard deviation of $100,000. Average sales and the standard deviation of sales across all salesmen are expected to be the same in 2021. Assume that a given salesperson’s sales are positively but imperfectly correlated from one year to the next; in the past, year-to-year correlations have been about .25. Now consider salesperson Patty -- she had sales of $700,000 in 2020. Calculate the most appropriate prediction for Patty’s 2021 sales assuming a year-to-year correlation of .25?
In 2020, all salesman had average sales of $500,000 with a standard deviation of $100,000. Average sales and the standard deviation of sales across all salesmen are expected to be the same in 2021. Assume that a given salesperson’s sales are positively but imperfectly correlated from one year to the next; in the past, year-to-year correlations have been about .25. Now consider salesperson Patty -- she had sales of $700,000 in 2020. Calculate the most appropriate prediction for Patty’s 2021 sales assuming a year-to-year correlation of .25?
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.4: Distributions Of Data
Problem 19PFA
Related questions
Question
In 2020, all salesman had average sales of $500,000 with a standard deviation of $100,000. Average sales and the standard deviation of sales across all salesmen are expected to be the same in 2021. Assume that a given salesperson’s sales are positively but imperfectly correlated from one year to the next; in the past, year-to-year
Now consider salesperson Patty -- she had sales of $700,000 in 2020.
Calculate the most appropriate prediction for Patty’s 2021 sales assuming a year-to-year correlation of .25?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
Recommended textbooks for you
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill