WG12.3 (a) Analyze the data presented in Table WG12.1, or each sales per month t

Question

WG12.3 (a) Analyze the data presented in Table WG12.1, or each sales per month they represented wasa tion n suggested that data for the ained from company records. She was monthed in obtaining data on the sales volume e recommended that sales to veterinari- rom the analysis, because the amount of sales. Table WG12.1 indicates the sales for the and develop a statistical model to predict the sales of cases of canned cat food from the num- ber of sales outlets. Write a report giving detailed findings concerning the model that has been fitted to the data. th. She i nth and the number of retail sales outlets product line. very sma (b) If 1,050 sales outlets are expected in the com- ing month, predict the number of cases that you would expect to be sold. Indicate the assumptions upon which this prediction is based. Do you think these assumptions are valid? Explain r of retail sales outlets for the Whitney Exercises WG12.1 What criticism can you make method that Caesar has been using to make fore- concerning the (c) What would be the danger of predicting sales one year from now (when you expect that there will be 1,500 sales outlets)? Explain. REFERENCES 1. Anscombe, F. J; "Graphs in Statistical Analysis," American Statistician, 1973, Vol. 27, pp. 17-21 2. Hoaglin, D. C, and R. Welsch: The Hat Matrix in Regression and ANOVA." The American Statistician, 1978, Vol. 32, pp. 17-22 . Hosmer, D. and S.Lemeshow; Applied Logistic Regression; New York: John Wiley, 1989 4. Microsoft Excel 2000; Redmond,WA: Microsoft Corp., 1999 5. MINITAB for Windows Version 12; State College, PA: MINITAB, Inc., 1998 6. Neter, J., M. H. Kutner, C. J. Nachtsheim, and W.Wasserman: Applied Linear Statistical Models, 4th ed; Homewood, IL: Richard D. Irwin, 1996 APPENDIX 12.1 Using Microsaofe Eexecel for Simple Linear Regresion Using Microsoft Excel to Obtain a Scatter Diagram sing Microsoft Excel for Simple Linear and Correlation linaram to plot the relationship between an X variable and a Y va l sexample, consider the drill

Explanation / Answer

Here number of outlets is independent variable and cases sold is dependent variable.

This is the problem of simple linear regression.

We can do regression in EXCEL.

steps :

ENTER data into excel sheet --> Data --> Data analysis --> Regression --> ok --> Input Y range : select dependent variable --> Input X range : select independent variable --> Labels --> Output range : Select one empty cell --> ok

From the output,

Incercept = -2679.96

SLope = 46.51

The regression equation is,

Cases sold = -2679.96 + 46.51*number of outlets

Now we have to predict cases sold for given number of outlets = 1050

This we can find using regression equation.

Cases sold = -2679.96 + 46.51*1050 = 46159.62

Now again we have to find cases sold for given number of outlets = 1500

Cases sold = -2679.96 + 46.51*1500 = 67090.87

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