Multivariate Analysis

Johnry P. Dayupay

Problem:

Sales $
Intelligence Extroversion
Person Sales/Week
1 89 21 2625
 The 2 93 24 2700 regression
equation for 3 91 21 3100 the above
data is: 4 122 23 3150
5 115 27 3175
Predicted 6 100 18 3100 Sales
7 98 19 2700
8 105 16 2475
9 112 23 3625
10 109 28 3525
11 130 20 3225
12 104 25 3450
13 104 20 2425
14 111 26 3025
15 97 28 3625
16 115 29 2750
17 113 25 3150
18 88 23 2600
19 108 19 2525
20 101 16 2650

21 112 22 3008

Performance = 993.925 + 8.22*Intelligence + 49.709*Extraversion

The model is significant at 5% level of significance as the p-value is less than 0.05 for ANOVA table.

But there is only one variable is significant at 5% level which is ‘Extroversion’. Neither the Intelligence
nor the interceptor is significant at 5% level because the p-value is bigger than 0.05. This model explains
35.3% of the variation in sales performance (dependent variable)
using these two independent variables.

The normal probability plot shows that the residuals are

randomly distributed because all the points are close to a straight
line. This also indicates only a moderate linear relationship (R =
59.4%) between the variables.

Lastly, the interpretation is that sales performance increases as

ABC sales people become more intelligent and more
extroverted.