Mini Case 5 linear regression

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

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

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