Multiple Regression Assignment - Multiple Regression...

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Multiple Regression Assignment Johnny Stromp Data Set KS11
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Section A: Introduction The purpose of this report is to help Auhsoj Ayres, the inventory manager at CF, supply the company’s inventory of sport utility vehicles (SUVs) by placing the April, 2011 order with various manufacturers. In order to make a good decision, I have been hired to forecast the number of sport utility vehicles sold in a multiple regression model. There are many variables required to make an accurate forecast. The variable names and definitions are shown below in Table 1.1. Table 1.1: Variable Names and Definitions Name Variable Description (all are monthly values) Sales Number of sport utility vehicles sold TV Television advertising expenses ($1000s) Newspaper Newspaper advertising expenses ($1000s) Futures Average price of gasoline futures market (1000s) Associates Average number of sales associates working per day Bonus Average value of bonus bucks ($ per SUV sold) Price Average list price for sport utility vehicles sold Promotion 1 for month with a sales promotion; 0 if no sales promotion Section B: Preliminary Data Analysis 1. Outlier Assessment An outlier, or an extreme observation, is identified as being well separated from the remainder of the data. In order for a data point to even be looked at or considered to be an outlier must be at least three standard deviations greater or less than the mean. Once a number is considered an outlier it is important to find the reasoning behind it. If the number is an error in recording or reporting the data then it should be removed. It should also be removed if the data was recorded during a major disruption in the supply chain or rapid change in market conditions. However, if the number cannot be linked to some extraordinary event or condition, then it should not be removed. After reviewing all of the data (as shown in Table 1.2) I found out that there was only one variable, Bonus, with a standard deviation greater than three. After reviewing each month in the Bonus data set, I found two outliers during the months
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This note was uploaded on 05/05/2011 for the course BUS 2023 taught by Professor Waller during the Spring '11 term at University of Arkansas for Medical Sciences.

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Multiple Regression Assignment - Multiple Regression...

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