A sales manager for an advertising agency believes that there is a relationship between the number of contacts that a salesperson makes and the amount of sales dollars earned. A regression analysis shows the following results: What is the standard error of the slope?

Question

A sales manager for an advertising agency believes that there is a relationship between the number of contacts that a salesperson makes and the amount of sales dollars earned. A regression analysis shows the following results:  What is the standard error of the slope?

Quizplus · Accepted Answer

The standard error of the slope is given by the formula: 
SE = sqrt [ (1 - R^2) * (SSY / (n - 2)) / (SSX) ]
where R^2 is the coefficient of determination, SSY is the sum of squares for the dependent variable, n is the sample size, and SSX is the sum of squares for the independent variable. 
Plugging in the values from the regression output, we get: 
SE = sqrt [ (1 - 0.782) * (42,697 / (10 - 2)) / (1,904) ]
SE = sqrt [ 0.218 * (5,337.13) / (1,904) ]
SE = sqrt [ 0.612 ]
SE = 0.782
So, the standard error of the slope is 0.176 (option A).

A Sales Manager for an Advertising Agency Believes That There