Stats Solutions

[Solution] A bank has offices in six different markets. It is feasible to say the annual sales of offices are related to the population of the communities


Question:

A bank has offices in six different markets. It is feasible to say the annual sales of offices are related to the population of the communities they are in. The dependent variable, y, is annual sales. The independent variable, x is market population. The data are as follows:

Data on Annual Sale and Market Population for Six Offices

Office y=Annual Sales (000s omitted) x=Market Population (000s omitted)
Ionia 500 20
Belding 325 8
Hastings 350 10
Lowell 400 16
Sunfield 250 5
Woodland 125 4

A regression analysis was conducted using Excel and the results of this analysis are shown below. Based on this output, what can you conclude? Interpret all results, write the regression equation, and state whether this analysis was fit or not in predicting sales from market population? What does that mean for business? Answer each question briefly

Excel Output for Question 2:


The Scatterplot of the two variables is shown below

The regression and ANOVA analysis was done on Excel and is shown here.

SUMMARY OUTPUT
Regression Statistics
Multiple R 0.93
R Square 0.87
Adjusted R Square 0.83
Standard Error 52.60
Observations 6

ANOVA
df SS MS F Significance F
Regression 1 71431.70 71431.70 25.81 0.007
Residual 4 11068.30 2767.07
Total 5 82500
Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept 126.32 44.61 2.83 0.05 2.45 250.18 2.45 250.18
Population 18.92 3.72 5.08 0.007 8.58 29.26 8.58 29.26
RESIDUAL OUTPUT PROBABILITY OUTPUT
Observation Predicted Sales Residuals Standard Residuals Percentile Sales
1 504.76 -4.76 -0.10 8.33 125
2 429.07 -29.07 -0.62 25 250
3 315.54 34.46 0.73 41.67 325
4 277.69 47.31 1.01 58.33 350
5 220.93 29.07 0.62 75 400
6 202.01 -77.01 -1.63 91.67 500


Price: $2.99
Solution: The downloadable solution consists of 4 pages
Deliverable: Word Document


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