Spreadsheet Modeling & Decision Analysis: A Practical Introduction to Business Analytics (MindTap Course List)
8th Edition
ISBN: 9781305947412
Author: Cliff Ragsdale
Publisher: Cengage Learning
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A cosmetic manufacturer wants to understand why users shop online versus in store, and how they might take better advantage of the online channel; the manufacturer wants to make improvements to the company’s website. The manufacturer also wants to find out why Nordstrom.com (a competitor’s website) appeals to cosmetic consumers versus other websites. The cosmetic manufacturer also wants to find ways to improve consumers’ in-store experience. Further, the manufacturer wants to produce a three (3) month sales forecast based on the data produced from the research.
Objectives:
Why users shop online versus in store
How to take advantage of the online channel
How to improve the company’s website
Why does Nordstrom.com (their competitor) appeal to cosmetic consumers versus other websites.
Ways to improve consumers’ in-store experience
Requireed: Produce fictitious findings, chart and dat analysis that relate back to the objectives.
Assume that Young Corporation is introducing a new heartburn relief medication as an over the counter treatment. Young's marketing team used data to determine how to meet the minimum sales goals. The team determined that switching to an online marketing plan would be the best to maximize sales. This is an example of using
Question 8 options:
a)
descriptive analytics
b)
diagnostic analytics
c)
predictive analytics
d)
prescriptive analytics
MovieFlix - Advertising and
Subscriptions
Year
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Advertising Expenditure
$ 000
51
58
62
65
68 75 77 78 78 84 85
76
Membership Subscriptions
(1) Plot the scattergraph for the data.
62
68
66
66
欲 72 73 72 78 73 75
67
76
(ii) Use the data, to develop a regression equation relating advertisi. expenditure to membership.
(iii) Estimate the membership if $40 000 is spent on advertising.
(iv) How much must be spent on advertising to obtain a membership of 80 (000)?
(v) What is the nature of the relationship between advertising expenditure and membership?
(vi) Forecast 2024 membership using an alternative method, clearly explaining the limitations of your selected
method.
(vii) What are the limitations of the method used in (iii)?
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- The Baker Company wants to develop a budget to predict how overhead costs vary with activity levels. Management is trying to decide whether direct labor hours (DLH) or units produced is the better measure of activity for the firm. Monthly data for the preceding 24 months appear in the file P13_40.xlsx. Use regression analysis to determine which measure, DLH or Units (or both), should be used for the budget. How would the regression equation be used to obtain the budget for the firms overhead costs?arrow_forwardThe file P13_28.xlsx contains monthly retail sales of U.S. liquor stores. a. Is seasonality present in these data? If so, characterize the seasonality pattern. b. Use Winters method to forecast this series with smoothing constants = = 0.1 and = 0.3. Does the forecast series seem to track the seasonal pattern well? What are your forecasts for the next 12 months?arrow_forwardThe file P13_29.xlsx contains monthly time series data for total U.S. retail sales of building materials (which includes retail sales of building materials, hardware and garden supply stores, and mobile home dealers). a. Is seasonality present in these data? If so, characterize the seasonality pattern. b. Use Winters method to forecast this series with smoothing constants = = 0.1 and = 0.3. Does the forecast series seem to track the seasonal pattern well? What are your forecasts for the next 12 months?arrow_forward
- 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.arrow_forwardThe number of sales invoice checked is an example of? 1.qualitative data 2.continuous data 3.discrete data 4.temporal dataarrow_forwardTip Top Toys is a relatively small division of Worldwide Enterprises. Worldwide has nine other divisions, which include insurance, health-care products, and financial planning services, to name a few. The corporate marketing director for Worldwide has requested Tip Top’s customer shopping data to target people who might be likely to purchase items or services from other Worldwide divisions. The database manager is not totally comfortable with this and pointed out Tip Top’s web privacy policy, which states “Tip Top Toys, a division of Worldwide Enterprises, will not share personal data with other companies without a customer’s consent.” The marketing director replied that the statement only applies to outside companies— not other Worldwide divisions. He said he checked with the corporate legal department, and they agreed. The database manager replied, “Even if it is legally OK, it’s not the right thing to do. Many people take our statement to mean that their data does not leave Tip Top.…arrow_forward
- Tip Top Toys is a relatively small division of Worldwide Enterprises. Worldwide has nine other divisions, which include insurance, health-care products, and financial planning services, to name a few. The corporate marketing director for Worldwide has requested Tip Top’s customer shopping data to target people who might be likely to purchase items or services from other Worldwide divisions. The database manager is not totally comfortable with this and pointed out Tip Top’s web privacy policy, which states “Tip Top Toys, a division of Worldwide Enterprises, will not share personal data with other companies without a customer’s consent.” The marketing director replied that the statement only applies to outside companies— not other Worldwide divisions. He said he checked with the corporate legal department, and they agreed. The database manager replied, “Even if it is legally OK, it’s not the right thing to do. Many people take our statement to mean that their data does not leave Tip Top.…arrow_forwardÉ Salespersons use the direct comparison approach to estimate the value of a property. Whlch of the following is a disadvantage when estimating value using this approach? O select one answer. It is generally accepted by the courts and the public. It avoids various problems associated with estimating and forecasting, such as depreciation. Consumers generally understand and use it. Data is historical in nature.arrow_forwardMovieFlix - Advertising and Subscriptions Year Advertising Expenditure $ 000 Membership Subscriptions 2013 51 62 2014 58 68 2015 62 66 2016 65 66 2017 68 67 2018 76 72 2019 77 73 2020 78 72 2021 78 78 2022 84 73 2023 85 76 (i) Plot the scattergraph for the data. (ii) Use the data, to develop a regression equation relating advertising expenditure to membership. (iii) Estimate the membership if $40 000 is spent on advertising. (iv) How much must be spent on advertising to obtain a membership of 80 (000)? (iv) What is the nature of the relationship between advertising expenditure and membership? (v) Forecast 2024 membership using an alternative method, clearly explaining…arrow_forward
- Explain the meaning of business analytics and its role in generating value from data. Distinguish between model and modelling, and explain the steps in solving business problems using analytics.arrow_forwardIn respect of primary and secondary data compare and contrast: 1) The main differences between primary and secondary data 2)The advantages and disadvantages of primary and secondary dataarrow_forwardb. The following table shows the number of televisions sold over the last ten years at alocal electronic store. YEAR TV SALES 1 1502 3003 4804 6005 6306 6407 7008 8259 90010 980 i. Using trend projection, develop a formula to predict sales for years 11 and 12. Youhave to show all working. You will need to develop a table to calculate the slope andthe intercept.arrow_forward
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