Cincinnati Paint Company sells quality brands of paints through hardware stores throughout the United States. The...

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Cincinnati Paint Company sells quality brands of paints throughhardware stores throughout the United States. The company maintainsa large sales force who call on existing customers and look for newbusiness. The national sales manager is investigating therelationship between the number of sales calls made and the milesdriven by the sales representative. Also, do the salesrepresentatives who drive the most miles and make the most callsnecessarily earn the most in sales commissions? To investigate, thevice president of sales selected a sample of 25 salesrepresentatives and determined:

  • The amount earned in commissions last month (y)
  • The number of miles driven last month(x1)
  • The number of sales calls made last month(x2)
Commissions($000)CallsDrivenCommissions($000)CallsDriven
191402,374371473,293
111332,227431463,106
331462,732261502,127
381433,354391462,793
251452,292351523,211
441443,451121322,290
291393,114321482,852
391393,347251352,693
391452,843271322,935
291342,627221292,671
221392,123401582,991
121392,224351482,834
461493,465

Develop a regression equation including an interaction term.(Negative amount should be indicated by a minus sign. Roundyour answers to 3 decimal places.)

Commissions =+Calls +Miles +x1x2

Complete the following table. (Negative amounts shouldbe indicated by a minus sign. Round your answers to 3 decimalplaces.)

PredictorCoefficientSE Coefficienttp-value
Constant
Calls
Miles
X1X2

Compute the value of the test statistic corresponding to theinteraction term. (Negative amount should be indicated by aminus sign. Round your answer to 2 decimal places.)

Value of the test statistic

At the 0.05 significance level is there a significantinteraction between the number of sales calls and the milesdriven?

This is, so we conclude thatthere.

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