{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

710-13_regression_analysis - Qing Liu Assistant Professor...

Info icon This preview shows pages 1–10. Sign up to view the full content.

View Full Document Right Arrow Icon
Qing Liu Assistant Professor of Marketing 1
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Correlation Analysis S A L E S ADVERTISING  EXPENDITURES Correlation Analysis: A statistical technique used to measure the linear relationship between two or more ratio-scaled variables Y X ( 29 ( 29 ( 29 ( 29 1 2 2 1 1 n i i i n n i i i i X X Y Y r X X Y Y = = = - - = - -
Image of page 2
Correlation Analysis Example 3 Correlations 1 -.461** .000 4368 4368 -.461** 1 .000 4368 4368 Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) N DiGiorno Sales DiGiorno Price DiGiorno Sales DiGiorno Price Correlation is significant at the 0.01 level (2-tailed). **.
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Regression Analysis S A L E S ADVERTISING Regression Analysis: A statistical technique used to derive an equation that relates a dependent variable to one or more independent variables for the purpose of - Explanation - Prediction Sales = 56+7.4*Advertising
Image of page 4
Simple Regression Example Sales = β 0 + β 1 Price Inference about β 0 = intercept and β 1 = slope Hypothesis test Model fit Prediction Scope of the model Frozen Pizza
Image of page 5

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Correlation Plot Pearson correlation of Sales  and Price = -0.413 6.5 6.0 5.5 5.0 4.5 4.0 3.5 3.0 350 300 250 200 150 100 50 0 Price Sales
Image of page 6
Simple Regression The regression equation is Sales = 176 - 22.3 Price Predictor Coef SE Coef T P Constant 175.76 26.63 6.60 0.000 Price -22.34 4.88 -4.58 0.000 R-Sq = 17.1% R-Sq(adj) = 16.3% Hypothesis Test Coefficient of Determinati on
Image of page 7

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Hypothesis Test Focus on the slope H o : There is no relationship between sales and price ( β price =0) H a : There is a relationship between sales and price ( β price 0) What does the p-value tell us?
Image of page 8
Prediction How much retail sales could Kraft generate if the price for its 12” frozen pizza was set at $3.5?
Image of page 9

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 10
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern