{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Mini Case 5 linear regression

# Mini Case 5 linear regression - the company CEO(Mr Zoomer...

This preview shows pages 1–2. Sign up to view the full content.

Mini-Case # 5 – Forecasting Your past successes have now earned you a promotion! ZoomZoom owns a small recreational marina on the Missouri river. Managing this facility is a crowing jewel in a resume! In addition to the sales of motorcycles, they also offer the normal marina amenities including gasoline. From these observations in the past, you think there is a direct link between the river level, and the amount of fuel you sell. As the level rises, your sales increase, and as it decreases, your sales decline. The owner of the marina just took a statistics class at good ole Peru State College, and believes that linear regression is the key to predicting sales. He has given you the task of developing this equation. As a reference, please see both your text, (chapter 10 and the Excel Tutor for this chapter located course documents, online, or on your DVD) Take special note of the fact that the data tools are not installed in Excel until used the first time. You need to present a well written, grammar and spelling error free memo to

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

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: the company CEO (Mr. Zoomer). Please use a memo template in Word, and paste in the appropriate charts and data. Explain all data to Mr. Zoomer, as his grade in the statistics class was not very good. River Level Gallons of Gasoline Sold 12.1 2046 13.2 2111 13.5 2214 14.2 2460 15 2640 15.4 2710 16.2 2924 16.7 3090 17.1 3332 17.2 3460 17.4 3671 17.5 3712 Use regression analysis to calculate the line that best fits relationship between the river level and the sale of gasoline. This is the y= 11.5441+19.63241X . Examine the excel tutor for where these numbers are derived from. Then use that equation to calculate what the sales will be at a river level of 15.8 and a level of 16.3. Finally, explain to your boss the implications of using this regression model if heavy rains cause the river to rise above 18 feet. Grading Rubric Grammar/spelling 3 Correct Equation of the line 5 Correct solution 15.8 4 Correct solution 16.3 4 Regression graph correct 4 Explanation of 18 foot level 5...
View Full Document

{[ snackBarMessage ]}

### What students are saying

• 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.

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

• 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.

Dana University of Pennsylvania ‘17, Course Hero Intern

• 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.

Jill Tulane University ‘16, Course Hero Intern