Answer To : Analyse and present data graphically using spreadsheet software (Excel). 2. Critically evaluate...
David answered on Dec 26 2019
Regression analysis helps me to predict the sales of federated island, Industria, Nokaragua, and Sweden country. I am given ln(GDP), price index, population, advertisement and stores for countries federated island, Industria, Nokaragua, and Sweden country. I perform three regression analysis to predict sales of federated island, Industria and Nokaragua on basis of co
esponding ln(GDP), price index, population, advertisement and stores for each country. The values of future independent variables are predicted by using formula of growth rate. I plug in these calculated independent variables in the co
esponding regression equation for 3 countries federated island, Industria, Nokaragua in order to obtain the predicted value of sales. For the prediction of sales co
esponding to Sweden, I choose the best appropriate regression model among 3 models created for countries federated island, Industria and Nokaragua. The value of GDP/population and Price index for Sweden is compared with that of federated island, Industria and Nokaragua. The country among federated island, Industria and Nokaragua with closest GDP/population and Price to Sweden is selected to prediction of Sweden sales. Then I plug in the calculated values of independent variables (using growth rate) in the co
esponding regression equation for selected country.
There are 25 observations of sales for each country. The mean sale of federated island, Industria and Nokaragua is $713,603, $17,372,234 and $7,859,679. Industria highest mean and median of sales. And federated Island has the lowest mean and median of sales. The minimum and maximum of sales for Federated Islands, Industria and Nokaragua is ($432,967 ; $957,950) ($11,919,253 ; $23,103,581) and ($5,162,754 ; $10,554,044) respectively.
Advertisement and Stores have a strong linear relationship between them for three countries of my interest Federated Islands, Industria and Nokaragua. Hence there is problem of Multi-co-linearity. Survey store has weak linear relationship with Sales. Hence I Remove survey store as independent variable in further regression analysis. Fox, J. (1997).
For country Federated Islands, (Sales, GDP) (Sales, population 15-65) has positive linear relationship. Sales and price index have a weak negative linear relationship. The regression output is given below.
Adjusted R Square
There is 99.46% variation in sales which is explained by ln(GDP), price index, population 15-65, advertisement and stores. Regression equation is given by sales = -1295338.63 + 82937.488ln(GDP) - 19470*Price_index - 21.197*population + 42453.3*advertisement + 19801.54*stores. Ho: coefficient of independent...