Total Excel work
Part A Q1
| Day | 24oz units | 12oz units | Size change | Label change | Total minutes | ||||||||||
| 1 | 4400 | 7650 | 7 | 6 | 178 | SUMMARY OUTPUT | |||||||||
| 2 | 9600 | 4430 | 3 | 9 | 136 | ||||||||||
| 3 | 7440 | 4060 | 5 | 7 | 88 | Regression Statistics | |||||||||
| 4 | 9800 | 8035 | 2 | 5 | 124 | Multiple R | 0.9652034251 | ||||||||
| 5 | 11500 | 6140 | 9 | 10 | 241 | R Square | 0.9316176518 | ||||||||
| 6 | 6280 | 6900 | 8 | 12 | 202 | Adjusted R Square | 0.9206764761 | ||||||||
| 7 | 8320 | 6770 | 4 | 2 | 111 | Standard Error | 16.7299882564 | ||||||||
| 8 | 10500 | 5300 | 4 | 8 | 146 | Observations | 30 | ||||||||
| 9 | 11450 | 4560 | 10 | 14 | 263 | ||||||||||
| 10 | 2830 | 3830 | 7 | 7 | 177 | ANOVA | |||||||||
| 11 | 10850 | 6880 | 6 | 9 | 200 | df | SS | MS | F | Significance F | |||||
| 12 | 2680 | 3920 | 11 | 14 | 269 | Regression | 4 | 95328.9873235525 | 23832.2468308881 | 85.1478558015 | 0 | ||||
| 13 | 7400 | 7160 | 14 | 16 | 318 | Residual | 25 | 6997.3126764474 | 279.8925070579 | ||||||
| 14 | 3720 | 8700 | 6 | 11 | 199 | Total | 29 | 102326.3 | |||||||
| 15 | 4580 | 8500 | 8 | 9 | 191 | ||||||||||
| 16 | 3770 | 5050 | 9 | 13 | 247 | Coefficients | Standard Error | t Stat | P-value | Lower 95% | Upper 95% | Lower 95.0% | Upper 95.0% | ||
| 17 | 2820 | 3220 | 2 | 4 | 60 | Intercept | -2.377596872 | 16.2975483293 | -0.1458867815 | 0.8851807109 | -35.9430259715 | 31.1878322275 | -35.9430259715 | 31.1878322275 | |
| 18 | 5070 | 6400 | 8 | 12 | 200 | 24oz units | 0.0022415107 | 0.0010252698 | 2.18626413 | 0.0383707821 | 0.0001299279 | 0.0043530934 | 0.0001299279 | 0.0043530934 | |
| 19 | 7300 | 8900 | 7 | 8 | 181 | 12oz units | 0.0047027371 | 0.0020134783 | 2.335628347 | 0.0278322673 | 0.0005559008 | 0.0088495734 | 0.0005559008 | 0.0088495734 | |
| 20 | 7060 | 6640 | 3 | 3 | 117 | Size change | 14.2080770462 | 1.9837469465 | 7.1622426799 | 0.000000166 | 10.122473731 | 18.2936803614 | 10.122473731 | 18.2936803614 | |
| 21 | 3050 | 7740 | 7 | 9 | 199 | Label change | 5.2559462352 | 1.5885859955 | 3.3085689097 | 0.0028443161 | 1.9841921331 | 8.5277003374 | 1.9841921331 | 8.5277003374 | |
| 22 | 10480 | 6400 | 10 | 12 | 271 | ||||||||||
| 23 | 3800 | 6000 | 4 | 4 | 114 | ||||||||||
| 24 | 6570 | 6800 | 9 | 9 | 212 | The regression model is | |||||||||
| 25 | 6140 | 7000 | 7 | 12 | 189 | Total minutes=-2.3776+0.00224* (24oz units) +0.0047*(12oz units) +14.2* (Size change) +5.26* (Label change) | |||||||||
| 26 | 10370 | 8600 | 6 | 7 | 195 | This indicates that the model needs an update since does not fit the equation y = (1/200) *x1 + (1/255) *x2 + 10*x3 + 5*x4 , | |||||||||
| 27 | 4060 | 7000 | 5 | 5 | 139 | which was estimated for production run time | |||||||||
| 28 | 3470 | 7200 | 8 | 12 | 223 | ||||||||||
| 29 | 10130 | 6900 | 10 | 10 | 246 | ||||||||||
| 30 | 11300 | 8450 | 6 | 9 | 195 | b.) A positive intercept indicates that an increase in the independent variables which include (label change, size change,12ozunits and 24oz units) | |||||||||
| will lead to an increase in the dependent variable (total minutes) |
Q2 data
| Property # | Profit | Size | Advertexp | Mgrperf | Neighbors | Attract |
| 1 | 166.855 | 0 | 12.72 | 3 | 8 | 1 |
| 2 | 299.980 | 0 | 42.50 | 3 | 5 | 2 |
| 3 | 840.615 | 1 | 32.35 | 4 | 28 | 3 |
| 4 | 201.433 | 0 | 10.09 | 5 | 4 | 2 |
| 5 | 872.874 | 1 | 20.27 | 4 | 31 | 3 |
| 6 | 186.493 | 1 | 23.70 | 2 | 9 | 3 |
| 7 | 300.901 | 1 | 19.11 | 3 | 9 | 4 |
| 8 | 755.746 | 1 | 32.87 | 4 | 19 | 3 |
| 9 | 808.764 | 1 | 40.37 | 4 | 17 | 3 |
| 10 | 332.976 | 0 | 25.37 | 4 | 13 | 2 |
| 11 | 590.922 | 1 | 46.40 | 3 | 6 | 2 |
| 12 | 329.644 | 0 | 39.47 | 2 | 12 | 1 |
| 13 | 829.321 | 1 | 38.99 | 5 | 7 | 3 |
| 14 | 713.162 | 1 | 42.72 | 4 | 13 | 4 |
| 15 | 341.979 | 0 | 29.17 | 3 | 24 | 2 |
| 16 | 322.471 | 0 | 43.33 | 3 | 6 | 2 |
| 17 | 608.782 | 1 | 40.95 | 3 | 3 | 2 |
| 18 | 134.128 | 0 | 26.01 | 3 | 9 | 1 |
| 19 | 194.545 | 0 | 22.53 | 5 | 11 | 1 |
| 20 | 494.896 | 1 | 21.52 | 4 | 12 | 3 |
| 21 | 206.774 | 1 | 27.91 | 3 | 4 | 3 |
| 22 | 565.189 | 1 | 31.51 | 4 | 8 | 3 |
| 23 | 279.658 | 0 | 33.81 | 3 | 7 | 3 |
| 24 | 89.235 | 0 | 43.45 | 1 | 6 | 2 |
| 25 | 372.522 | 1 | 17.41 | 4 | 2 | 2 |
| 26 | 89.877 | 0 | 29.45 | 4 | 7 | 3 |
| 27 | 91.116 | 0 | 23.86 | 2 | 11 | 1 |
| 28 | 201.996 | 0 | 32.04 | 5 | 6 | 2 |
| 29 | 673.770 | 1 | 44.16 | 5 | 11 | 2 |
| 30 | 326.183 | 0 | 45.10 | 4 | 7 | 4 |
| 31 | 382.848 | 0 | 28.69 | 4 | 14 | 1 |
| 32 | 730.514 | 1 | 43.87 | 4 | 13 | 2 |
| 33 | 457.112 | 1 | 24.84 | 3 | 12 | 1 |
| 34 | 823.807 | 1 | 49.36 | 3 | 20 | 3 |
| 35 | 425.945 | 1 | 32.73 | 3 | 9 | 4 |
| 36 | 530.593 | 1 | 14.23 | 3 | 20 | 3 |
| 37 | 449.527 | 1 | 27.69 | 3 | 9 | 3 |
| 38 | 297.237 | 0 | 35.02 | 3 | 6 | 3 |
| 39 | 198.809 | 0 | 45.02 | 2 | 10 | 2 |
| 40 | 420.942 | 1 | 13.65 | 4 | 9 | 1 |
| 41 | 581.784 | 1 | 48.10 | 3 | 9 | 5 |
| 42 | 229.914 | 0 | 15.01 | 4 | 17 | 2 |
| 43 | 683.982 | 1 | 49.55 | 4 | 10 | 3 |
| 44 | 801.843 | 1 | 41.93 | 5 | 11 | 3 |
| 45 | 203.803 | 1 | 11.46 | 2 | 10 | 3 |
| 46 | 101.432 | 0 | 18.82 | 3 | 13 | 3 |
| 47 | 254.989 | 1 | 40.94 | 3 | -0 | 2 |
| 48 | 432.992 | 0 | 46.02 | 3 | 17 | 3 |
| 49 | 496.599 | 1 | 24.53 | 4 | 12 | 3 |
| 50 | 204.977 | 1 | 23.36 | 4 | 5 | 3 |
| 51 | -5.541 | 1 | 16.78 | 1 | 4 | 2 |
| 52 | 645.317 | 1 | 27.97 | 5 | 11 | 3 |
| 53 | 707.284 | 1 | 36.58 | 2 | 20 | 4 |
| 54 | 372.360 | 0 | 14.59 | 3 | 26 | 2 |
| 55 | 190.481 | 1 | 17.92 | 3 | 8 | 2 |
| 56 | 421.723 | 0 | 49.20 | 4 | 9 | 3 |
| 57 | 172.960 | 0 | 11.54 | 4 | 9 | 3 |
| 58 | 413.843 | 0 | 36.03 | 4 | 13 | 1 |
| 59 | 761.802 | 0 | 47.79 | 4 | 26 | 2 |
| 60 | 1322.114 | 1 | 37.38 | 5 | 29 | 4 |
Profit = annual profit in thousands Size = small (0) or large (1) design Advertexp = annual spending on local advertising, in thousands Mgrperf = Performance rating of local manager, on scale where 5 = best and 1 = worst Attract = Rating of physical attractiveness of property (location, architecture, etc.) on a scale where 4 is best Neighbors = Quantity and quality of nearby attractions: restaurants, shopping, arts venues, etc. Scale from 0 to 30, where 30 is best
Part B Q(1a)
| Question 1 | ||||||||
| SUMMARY OUTPUT | ||||||||
| Regression Statistics | ||||||||
| Multiple R | 0.3851958122 | |||||||
| R Square | 0.1483758138 | |||||||
| Adjusted R Square | 0.1336926381 | |||||||
| Standard Error | 244.2010125818 | |||||||
| Observations | 60 | |||||||
| ANOVA | ||||||||
| df | SS | MS | F | Significance F | ||||
| Regression | 1 | 602612.368589524 | 602612.368589524 | 10.1051582819 | 0.002372386 | |||
| Residual | 58 | 3458779.80366727 | 59634.1345459875 | |||||
| Total | 59 | 4061392.1722568 | ||||||
| Coefficients | Standard Error | t Stat | P-value | Lower 95% | Upper 95% | Lower 95.0% | Upper 95.0% | |
| Intercept | 158.6375159665 | 91.6634833378 | 1.730651184 | 0.0888315905 | -24.8468812884 | 342.1219132214 | -24.8468812884 | 342.1219132214 |
| Attract | 108.7188643834 | 34.2005702269 | 3.1788611612 | 0.002372386 | 40.2589849925 | 177.1787437743 | 40.2589849925 | 177.1787437743 |
| Profit=158.64+108.72*(attractiveness) |
Part B Q(1b)&Q2
| SUMMARY OUTPUT | ||||||||
| Regression Statistics | ||||||||
| Multiple R | 0.9440259813 | |||||||
| R Square | 0.8911850534 | |||||||
| Adjusted R Square | 0.8811095954 | |||||||
| Standard Error | 90.4658900748 | |||||||
| Observations | 60 | |||||||
| ANOVA | ||||||||
| df | SS | MS | F | Significance F | ||||
| Regression | 5 | 3619451.99983697 | 723890.399967393 | 88.4510710674 | 9.35899484975784E-25 | |||
| Residual | 54 | 441940.172419833 | 8184.0772670339 | |||||
| Total | 59 | 4061392.1722568 | ||||||
| Coefficients | Standard Error | t Stat | P-value | Lower 95% | Upper 95% | Lower 95.0% | Upper 95.0% | |
| Intercept | -548.6481457102 | 58.7941616378 | -9.3316773371 | 0 | -666.5233426442 | -430.7729487762 | -666.5233426442 | -430.7729487762 |
| Size | 255.9771554027 | 26.0985271242 | 9.8081073382 | 0 | 203.6527589191 | 308.3015518863 | 203.6527589191 | 308.3015518863 |
| Advertexp | 9.5709608184 | 1.0331515504 | 9.2638498333 | 0 | 7.4996166733 | 11.6423049634 | 7.4996166733 | 11.6423049634 |
| Mgrperf | 91.3665182189 | 12.3795841212 | 7.380419029 | 0.000000001 | 66.5469464179 | 116.1860900198 | 66.5469464179 | 116.1860900198 |
| Neighbors | 19.6507863624 | 1.741968598 | 11.2807925383 | 8.09143067121739E-16 | 16.1583495996 | 23.1432231253 | 16.1583495996 | 23.1432231253 |
| Attract | -3.2510704768 | 14.5079526262 | -0.2240888539 | 0.8235338616 | -32.337764211 | 25.8356232574 | -32.337764211 | 25.8356232574 |
| Profit=-548.65+255.98*(size)+9.57* advertising expenditure+91.37*(managerial performance) +19.65*(neighboring amenities)-3.25* (attractiveness) | ||||||||
| From the two analysis it is clear that in the first analysis gives a more credible results for attractiveness since the effect in profit only is | ||||||||
| caused by one variable in this case attractiveness | ||||||||
| Attractiveness differs in part (a) and (b) since in (a) profit has only one effect from attractiveness while in (b) indicates | ||||||||
| effects from other independent variables thus affecting the results for attractiveness. | ||||||||
| Question 2 | ||||||||
| local advertising expenditure does not indicate diminishing returns since from the regression analysis in part (b) | ||||||||
| there exists a positive coefficient of 9.5709608, this implies that it has a positive effect to the profit thus increase in advertising expenditure | ||||||||
| will lead to an increase in profit. |
Part B Q3
| Question 3 | ||||||||
| SUMMARY OUTPUT | ||||||||
| Regression Statistics | ||||||||
| Multiple R | 0.4583427876 | |||||||
| R Square | 0.2100781109 | |||||||
| Adjusted R Square | 0.196458768 | |||||||
| Standard Error | 235.1882069909 | |||||||
| Observations | 60 | |||||||
| ANOVA | ||||||||
| df | SS | MS | F | Significance F | ||||
| Regression | 1 | 853209.595216024 | 853209.595216024 | 15.4249813825 | 0.0002307437 | |||
| Residual | 58 | 3208182.57704077 | 55313.4927075996 | |||||
| Total | 59 | 4061392.1722568 | ||||||
| Coefficients | Standard Error | t Stat | P-value | Lower 95% | Upper 95% | Lower 95.0% | Upper 95.0% | |
| Intercept | 0.2086313973 | 114.1176448904 | 0.0018282133 | 0.9985475713 | -228.2226536293 | 228.6399164239 | -228.2226536293 | 228.6399164239 |
| Mgrperf | 124.6263538272 | 31.7320087129 | 3.9274650072 | 0.0002307437 | 61.1078371794 | 188.1448704749 | 61.1078371794 | 188.1448704749 |
| Profit=0.209+124.626*(managerial talent) | ||||||||
| The regression model in (question 1(b)) shows that managerial performance had a positive coefficient of 91.37 | ||||||||
| and for the regression model in (question 3) the coefficient is 124.626, in both cases it is clear that managerial talent has | ||||||||
| a positive impact to the profitability of the company. From the two models, the model with only managerial performance | ||||||||
| is more powerful since it only has the effect of the managers’ performance. |
Part B Q4
| Mgrperf | Profit | |||
| 3 | 166.855 | |||
| 3 | 299.980 | |||
| 4 | 840.615 | |||
| 5 | 201.433 | |||
| 4 | 872.874 | |||
| 2 | 186.493 | |||
| 3 | 300.901 | |||
| 4 | 755.746 | |||
| 4 | 808.764 | |||
| 4 | 332.976 | |||
| 3 | 590.922 | |||
| 2 | 329.644 | |||
| 5 | 829.321 | |||
| 4 | 713.162 | |||
| 3 | 341.979 | |||
| 3 | 322.471 | A linear regression model takes the form | ||
| 3 | 608.782 | Y = a0 + b1X1 | ||
| 3 | 134.128 | Where x is the explanatory variable while y is the dependent variable | ||
| 5 | 194.545 | Nonlinear regression model takes the form | ||
| 4 | 494.896 | |||
| 3 | 206.774 | Y = f(X,β) + ε | ||
| 4 | 565.189 | Where: | ||
| 3 | 279.658 | |||
| 1 | 89.235 | X = a vector of p predictors, | ||
| 4 | 372.522 | β = a vector of k parameters, | ||
| 4 | 89.877 | f (-) = a known regression function, | ||
| 2 | 91.116 | ε = an error term. | ||
| 5 | 201.996 | |||
| 5 | 673.770 | |||
| 4 | 326.183 | The regression model is y = 124.63x + 0.2086 | ||
| 4 | 382.848 | This is a linear model thus managerial talent (measured by performance ratings) has no nonlinear effect on profit. | ||
| 4 | 730.514 | |||
| 3 | 457.112 | |||
| 3 | 823.807 | |||
| 3 | 425.945 | |||
| 3 | 530.593 | |||
| 3 | 449.527 | |||
| 3 | 297.237 | |||
| 2 | 198.809 | |||
| 4 | 420.942 | |||
| 3 | 581.784 | |||
| 4 | 229.914 | |||
| 4 | 683.982 | |||
| 5 | 801.843 | |||
| 2 | 203.803 | |||
| 3 | 101.432 | |||
| 3 | 254.989 | |||
| 3 | 432.992 | |||
| 4 | 496.599 | |||
| 4 | 204.977 | |||
| 1 | -5.541 | |||
| 5 | 645.317 | |||
| 2 | 707.284 | |||
| 3 | 372.360 | |||
| 3 | 190.481 | |||
| 4 | 421.723 | |||
| 4 | 172.960 | |||
| 4 | 413.843 | |||
| 4 | 761.802 | |||
| 5 | 1322.114 |
managers performance
Profit
3 3 4 5 4 2 3 4 4 4 3 2 5 4 3 3 3 3 5 4 3 4 3 1 4 4 2 5 5 4 4 4 3 3 3 3 3 3 2 4 3 4 4 5 2 3 3 3 4 4 1 5 2 3 3 4 4 4 4 5 166.855073939953 299.98017454936985 840.61497407861521 201.43299999999999 872.87431745521485 186.49299999999999 300.90139121265383 755.74586390573529 808.76418298287433 332.976 590.92200000000003 329.64361227448796 829.32100000000003 713.16152467067582 341.97899999999998 322.4712761423574 608.78188732354897 134.12848241566215 194.54465671913931 494.89592610056513 206.77432114584835 565.18927812222853 279.65849927720262 89.234999999999999 372.52155376455278 89.877048363159417 91.116125973844902 201.99600000000001 673.77024831317374 326.18305832993008 382.84798663196619 730.5140683953091 457.11166469779101 823.80674644033661 425.94509781387637 530.593318072680 86 449.52658580860589 297.2374343852606 198.809 420.94224519572219 581.7837005888158 229.9139500592905 683.98176896063842 801.84299999999996 203.8031977205747 101.432 254.989 432.99191034764982 496.59891321257339 204.97698913912288 -5.5408403872500633 645.31728844882923 707.28394800151818 372.36026555435501 190.48063801335869 421.72340562593428 172.95985787701326 413.84262500506475 761.8017352268007 1322.1135019920625
managers performance
profit
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