Recent Question/Assignment

Marking Criteria : You are required to demonstrate the following knowledge and skills in
this assessment
• Demonstrate the use of predictive modelling techniques in
Business data;
• Demonstrate the use of computer software to get necessary
• Demonstrate the skills of preparation of a managerial report
Style & Format : Business Report
Detailed Information :
CASE Study
Analysts at a company that produces small appliances are looking at
sales of 24 food preparation products in a city. They have noticed that
sales in this city have not been meeting forecast values for several
months and want to look at the problem in more detail. They have
collected data on monthly sales ($), advertising expenditure ($), number
of competing products available, number of discount opportunities (sales,
coupons, etc.) offered during the month, and the warranty period of the
item. Data are given in the file TBS910 ASS3 A.
1. Consider the problem that must be solved. What do you think is
the dependent variable in this problem? Which are the
independent variables?
2. Formulate the population regression model and comment on the
expected signs of independent variables.
3. Use EXCEL to find the multiple regression model you identified
4. Write down the regression equation and interpret the coefficients
in the model. How did the actual coefficients agree with your
expectation of their effect?
5. Set up the hypotheses and test the significance of the model
using 5 percent significance level.
6. What is the value of coefficient of determination of this model
and what does it mean?
7. There were four variables in the original analysis, but the
company wants to know whether they were all important in the
model. Set up the hypotheses to test whether the individual
coefficients are different from zero and perform the tests at the
5 percent level of significance.
8. Consider the variables that have coefficients that are
zero. Which of these would recommend dropping from the
model? Why?
9. Rerun the analysis, dropping the variable you identified above.
How does this change the model as a whole? Does dropping this
variable change the contribution of the other variables? If so,
how? Would you consider dropping another variable? If so,
which one? If you answered yes to above then rerun the analysis
dropping that variable.
10. Based on all of your analyses, what model do you think the
company should use?
Summarise your results in a formal
Marking crieteria

Please make all curve (Its mandatory to draw)