An online market evaluation company e-Serve collects data and provides analytic solutions for sales promotion. A subsample of e-Serve for promotion expenditure and sales of several ecommerce businesses in million taka are provided below. Promotion 22 15 4 4 7 10 12 15 17 15 Sales 150 100 80 100 90 120 110 120 130 140 (a) Show that a simple linear regression model can be fitted with these variables and state a linear model for these variables. How the least square method is used to estimate parameters in a linear regression model? (b) At 5% level of significance test the hypothesis that the correlation is not positive. Based on the test result comment on the sign of the regression coefficient. (c) Find the regression line of sales on promotion expenditure by estimating parameters. Also, test the significance of slope coefficient at 5% level. (d) Find the 95% confidence interval for the mean sales with promotion expenditure of 7 million taka and comment on your results.

The Pilot Pen Company has decided to use 15 test markets to examine the sensitivity of demand for its new product to various prices, as shown in the following table. Advertising effort was identical in each market. Each market had approximately the same level of business activity and population. Complete the following worksheet and then estimate the demand function for Pilot's new pen using a linear regression model. Test Market i 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total O 1.577 Regression Parameters Estimations Slope (B) Intercept (a) O 1.761 O 105.432 O 0.028 Price Charged (cents) Xi 50 50 55 55 60 60 65 65 70 70 80 80 90 90 40 1.902 O 0.032 980 What is the standard error of the estimate (se)? Quantity Sold (Thousands of Pens) O Yes O No Yi 20 21 19 19.5 20.5 19 16.5 15 14 15.5 13 14 11.5 11 17 What is the estimate of the standard deviation of the estimated slope (st)? 246.5 TiYi 1,000 1,050 1,045 1,072.5 1,230 1,140 1,072.5 975 980 1,085 1,040 1,120 1,035 990 680 I₂² 2,500 2,500…

Training Dept. of Nimrod Inc wants to develop a regression-based compensation model (compensation in $ per year, Comp) for its mid-level managers to encourage performance, loyalty, and continuing education based on three variables. ▪ Business unit-profitability (Profit per year in $). ▪ Working experiences in Nimrod Inc (Years). ▪ Whether or not a manager has a graduate degree (Grads). If a manager has a graduate degree equals 1, 0 otherwise. Table Attached Question: Use the (full) model to determine the compensation for a manager who has been working for twelve years in a company, no graduate degree, and Nimrod Inc profit of $8.000.000 last year.

Bus and subway ridership in Washington D. C. during the summer months is believed to be heavily tied to thenumber of tourists visiting the city. During the past 12 years, the following data have been obtained: Number of Tourists (in millions) 7 2 6 4 14 15 16 12 14 20 15 7 Ridership ( in 100,000) 15 10 13 15 25 27 24 20 27 44 34 17 a) Develop a linear regression model that would predict bus and subway ridership based on the number of tourists.b) Based on your model, predict the bus and subway ridership if there are eight million tourists in the city.c) Find the coefficient of determination and correlation coefficient between the two variables.

A chemical engineer is investigating the effect of process operating temperature on product yield. The study results in the following data: Temperature Yield 100 57.71 110 63.17 120 76.30 130 73.30 140 89.07 150 91.17 160 170 114.11 106.33 180 190 114.38 124.07 You can use Minitab to answer the following questions. However, you should be able to calculate the slope and intercept of the least squares regression model by hand, which requires only the mear and standard deviations of X and Y, and the correlation coefficient (here r = 0.9751). 1. what is the mean temperature? 155 150 130 145 Submit Answer Tries 0/2

Training Dept. of Nimrod Inc wants to develop a regression-based compensation model (compensation in $ per year, Comp) for its mid-level managers to encourage performance, loyalty, and continuing education based on three variables. ▪ Business unit-profitability (Profit per year in $). ▪ Working experiences in Nimrod Inc (Years). ▪ Whether or not a manager has a graduate degree (Grads). If a manager has a graduate degree equals 1, 0 otherwise. Table Attached Question: Which explanatory variables and interaction terms are significant and not significant at  alpha = 5%? Explain your answer briefly.

According to an article, one may be able to predict an individual's level of support for ecology based on demographic and ideological characteristics. The multiple regression model proposed by the authors was the following. y = 3.60-.01.x₁ +.01.x2-.07x3+.12x4+.02xs-.04x6-.01x7.04x8-.02xg+e The variables are defined as follows. y = ecology score (higher values indicate a greater concern for ecology) x₁ = age times 10 x₂ = income (in thousands of dollars) x3 = gender (1 = male, 0 = female) X4 = race (1 = white, 0 = nonwhite) X5 = education (in years) x6 = ideology (4 = conservative, 3 = right of center, 2 = middle of the road, 1 = left of center, and 0 = liberal) X7 = social class (4 = upper, 3 = upper middle, 2 = middle, 1 = lower middle, 0 = lower) x8 = postmaterialist (1 if postmaterialist, 0 otherwise) x9 = materialist (1 if materialist, O otherwise) (a) Suppose you knew a person with the following characteristics: a 30 year old, white female with a college degree (20 years of…

Linear regression is a highly effective data analysis method that accurately estimates the value of unknown data using related and known data. This is achieved using a linear equation that accurately models the quantitative relationship between the dependent (unknown) and independent (known) variables.  In other words, by looking at how one variable affects another, this method can accurately forecast the value of the dependent variable. It involves choosing the variable to forecast and using another variable to make informed predictions about its value. In experiments, the independent variable is the cause, and its value remains constant while other variables have been modified. On the other hand, the dependent variable is the effect, and changes influence its value in the independent variable. As I began my business, I struggled with determining the appropriate pricing for my products. It was important that the prices were reasonable while allowing for a profit. The pricing had to…

Scientific mass appraisal is a technique in which linear regression methods applied to the problem of property valuation. The objective in the Scientific Mass Appraisal is to predict the sale price of a home from selected characteristics of the building and taxes paid on the buildingTwenty four observations were obtained. The list of variables is also given.Answer the following questions, in each case justifying your answer by appropriate analyses.(a) In a fitted regression model that relates the sale price to taxes and building characteristics, would you include all the variables?(b) A veteran real estate agent has suggested that local taxes, number of rooms and age of the house would adequately describe the sale price . Do you agree ?(c) A real estate expert who who was brought into the project reasoned as follows:“ The selling price of a home is determined by its desirability and this is certainly a function of the physical characteristic of the building. This overall assessment is…

Is Advertising negatively related with sales? Are both Unemployment and Advertising statistically significant in this model?