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Sera Smith, a research analyst, had a hunch that there was a relationship between the percentage change in a firm’s number of salespeople and the percentage change in the firm’s sales during the following period. Smith ran a regression analysis on a sample of 50 firms, which resulted in a slope of 0.72, an intercept of +0.01, and an R2 value of 0.65. Based on this analysis, if a firm made no changes in the number of sales people, what percentage change in the firm’s sales during the following period does the regression model predict? A. +0.72%. B. +0.65%. C. +1.00%. |