Question

Data from a small bookstore are shown in the accompanying table. a larger firm is considering acquiring the bookstore. an analyst for the firm notes that the relationship of sales to the number of sales people working is a strong positive linear​ association, with no outliers. he suggests that when they acquire the store they should hire more people because that will drive higher sales. is his conclusion​ justified? what alternative explanations can you​ offer?

Answer 1

There is no data attached but the question can be answered without it. The analyst's conclusion that they should hire more people to drive higher sales is not justified because the area of the bookstore is small and is constant. It is not practical to hire more people and let them all work in that little space. Another alternative maybe is to advertise their books online to attract more customers.