Tom Marley and Jennifer Griggs have recently started a marketing research firm in Jacksonville, Florida. They have contacted the Florida Democratic Party with a proposal to do all political polling for the party. Since they have just started their company, the state party chairman is reluctant to sign a contract without some test of their accuracy. He has asked them to do a trial poll in a central Florida county known to have 62% registered Democratic Party voters. The poll itself had many questions. However, for the test of accuracy, only the proportion of registered Democrats was considered. Tom and Jennifer report back that from a random sample of 700 respondents, 378 were registered Democrats. a. Determine the probability that such a random sample would result in 378 or fewer Democrats in the sample. b. Based on your calculations in part a, would you recommend that the Florida Democratic Party (or anyone else for that matter) contract with the Marley/Griggs marketing research firm? Explain your answer.

Tom Marley and Jennifer Griggs have recently started a marketing research firm in Jacksonville, Florida. They have contacted the Florida Democratic Party with a proposal to do all political polling for the party. Since they have just started their company, the state party chairman is reluctant to sign a contract without some test of their accuracy. He has asked them to do a trial poll in a central Florida county known to have 62% registered Democratic Party voters. The poll itself had many questions. However, for the test of accuracy, only the proportion of registered Democrats was considered. Tom and Jennifer report back that from a random sample of 700 respondents, 378 were registered Democrats. a. Determine the probability that such a random sample would result in 378 or fewer Democrats in the sample. b. Based on your calculations in part a, would you recommend that the Florida Democratic Party (or anyone else for that matter) contract with the Marley/Griggs marketing research firm? Explain your answer.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section13.4: Multiple Regression Models

Problem 15P: Stock market analysts are continually looking for reliable predictors of stock prices. Consider the...

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The owner of a restaurant in Bloomington, Indiana, has recorded sales data for the past 19 years. He has also recorded data on potentially relevant variables. The data are listed in the file P13_17.xlsx. a. Estimate a simple regression equation involving annual sales (the dependent variable) and the size of the population residing within 10 miles of the restaurant (the explanatory variable). Interpret R-square for this regression. b. Add another explanatory variableannual advertising expendituresto the regression equation in part a. Estimate and interpret this expanded equation. How does the R-square value for this multiple regression equation compare to that of the simple regression equation estimated in part a? Explain any difference between the two R-square values. How can you use the adjusted R-squares for a comparison of the two equations? c. Add one more explanatory variable to the multiple regression equation estimated in part b. In particular, estimate and interpret the coefficients of a multiple regression equation that includes the previous years advertising expenditure. How does the inclusion of this third explanatory variable affect the R-square, compared to the corresponding values for the equation of part b? Explain any changes in this value. What does the adjusted R-square for the new equation tell you?
Stock market analysts are continually looking for reliable predictors of stock prices. Consider the problem of modeling the price per share of electric utility stocks (Y). Two variables thought to influence this stock price are return on average equity (X1) and annual dividend rate (X2). The stock price, returns on equity, and dividend rates on a randomly selected day for 16 electric utility stocks are provided in the file P13_15.xlsx. Estimate a multiple regression equation using the given data. Interpret each of the estimated regression coefficients. Also, interpret the standard error of estimate and the R-square value for these data.
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