Cassimy_Evan_Homework 7.docx - Evan Cassimy MGMT 651...

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Evan Cassimy MGMT 651 2/23/2020 Professor Avijit Sarkar 1. (15 points) Chapter 15 Problem 23. a) Yes, there appears to be a linear trend present. 0 2 4 6 8 10 12 14 16 0 10 20 30 40 50 60 Year Percentage b) Slope b = n tY – ( Y) ( t) Ʃ Ʃ Ʃ n t Ʃ 2 – ( t) Ʃ 2 = 15(5990.70) – 723.8 (120) 15(1240) – 120 2 = .715 Intercept a = y Ʃ b ( t) Ʃ = 7238 – 0715(120) = 42.5304 n (n) 15 (15) Prediction equation is: Percentage Y = 42.5304 + 0.715 t Submit your homework as one single attachment. Include Management Scientist/LINDO/POM-QM input and output screenshots wherever applicable. If you submit your homework as an MS-Excel document, make sure that it is properly formatted to 8.5x11 page size!! 1 of 9
Percentage = 42.5 + 0.715 Year (t) c) if t = 16 Prediction percentage = 42.5 + 0.715(16) = 53.94 d) if t = 18 Prediction percentage = 42.5 + 0.715(18) = 55.37 2. (15 points) Chapter 15 Problem 26 parts a and c only. Use POM-QM software for part c. a) 1 2 3 4 0 500 1000 1500 2000 2500 3000 3500 Chart Title Year 1 Year 2 Year 3 c) Submit your homework as one single attachment. Include Management Scientist/LINDO/POM-QM input and output screenshots wherever applicable. If you submit your homework as an MS-Excel document, make sure that it is properly formatted to 8.5x11 page size!! 2 of 9 Quarter 1 Q1 = 1 2492 + 712(1) + 1512(0) – 327(0) 3204 Quarter 2 Q2 = 1 2492 + 712(1) + 1512(0) – 327(0) 4004 Quarter 3 Q3 = 1 2492 + 712(1) + 1512(0) – 327(1) 2165 Quarter 4 2492 + 712(1) + 1512(0) – 327(0) 2492
3. (20 points) Denny’s collected the following data on the relationship between advertising and sales at a sample of five restaurants. Advertising Expenditure ($) Sales ($) 1000 19000 4000 44000 6000 40000 10000 52000 14000 53000 a. Use regression analysis to develop a straight-line approximation of the relationship between the two variables. Use POM-QM or MS-Excel template file posted in Moodle.
b. Use the equation developed in part (a) to forecast sales for an advertising expenditure of $8000.
c. Interpret the values of r and r 2 obtained from the analysis.
Submit your homework as one single attachment. Include Management Scientist/LINDO/POM-QM input and output screenshots wherever applicable. If you submit your homework as an MS-Excel document, make sure that it is properly formatted to 8.5x11 page size!! 3 of 9

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