Question: For a store we know the data concerning the correlation between Sales Values (mill LCU) and the Profit (mill. LCU) registered for the first 9
- For a store we know the data concerning the correlation between Sales Values (mill LCU) and the Profit (mill. LCU) registered for the first 9 months of the year 2019. The simple regression poutput partial results is presented in table 1.
Table 1. Simple regression output partial results
| ANOVA | |||||
| df | SS | MS | F | Significance F | |
| Regression | 1 | 0,03045 | ........... | ............ | 0,0000779643 |
| Residual | ... | ............. | 0,000453 | ||
| Total | 8 | ............. | |||
| Coefficients | Standard Error | t Stat | P-value | ||
| Intercept | 0,078438 | ............. | ............ | 0,001719 | |
| Sales value | 0,011712 | 0,001429 | ............. | 7,8E-05 |
Knowing that the average sales value founded was10 mill. LCU/month, the requests are:
- Write the regression equation and comment the regression coefficient. Calculate at least one PREDICTED Dependent variable value for one month, at your choice between years January and September.
- Analyse the validity of the model and show, step by step the calculation algorithm to decide upon the validity of the model
- Conduct the t test for a risk to be wrong in charactering this correlation also for the next months of the year of 5%. Describe the significance of the regression coefficient.
- Calculate and comment the confidence class as the result of the estimation method.
- Characterize the correlation between the variables registered for the first 9 months of the year
Suggestion: to answer all the above you need to calculate first the missing indicators (informations) of the output.
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