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    Y-Values: Regression Analysis Table 5.1 Monthly Sales and Print Cost

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    Reb Ren
    The document presents the results of a regression analysis examining the relationship between monthly TV ad spending (the independent variable) and monthly sales (the dependent variable) for a store. The analysis found a linear relationship between the two variables. The regression equation determined was Y=29.27+0.36X, indicating that for every $1,000 increase in TV ad spending, sales are predicted to increase by $360. The relationship between TV ad spending and sales was found to be statistically significant based on the F-statistic exceeding the critical F-value.

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    Y-Values: Regression Analysis Table 5.1 Monthly Sales and Print Cost

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    Reb Ren
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    The document presents the results of a regression analysis examining the relationship between monthly TV ad spending (the independent variable) and monthly sales (the dependent variable) for a store. The analysis found a linear relationship between the two variables. The regression equation determined was Y=29.27+0.36X, indicating that for every $1,000 increase in TV ad spending, sales are predicted to increase by $360. The relationship between TV ad spending and sales was found to be statistically significant based on the F-statistic exceeding the critical F-value.

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    REGRESSION-ANALYSIS-Estrada-Romero-Chavez-Jimenez-Reyes-Pena-Gonzales-G-Gonzales-R-Corong-Shiina-Ablaza-Salatan-Renolla-Naldo (1).docx

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    The document presents the results of a regression analysis examining the relationship between monthly TV ad spending (the independent variable) and monthly sales (the dependent variable) for a store. The analysis found a linear relationship between the two variables. The regression equation determined was Y=29.27+0.36X, indicating that for every $1,000 increase in TV ad spending, sales are predicted to increase by $360. The relationship between TV ad spending and sales was found to be statistically significant based on the F-statistic exceeding the critical F-value.

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    41 views3 pages

    Y-Values: Regression Analysis Table 5.1 Monthly Sales and Print Cost

    Uploaded by

    Reb Ren
    The document presents the results of a regression analysis examining the relationship between monthly TV ad spending (the independent variable) and monthly sales (the dependent variable) for a store. The analysis found a linear relationship between the two variables. The regression equation determined was Y=29.27+0.36X, indicating that for every $1,000 increase in TV ad spending, sales are predicted to increase by $360. The relationship between TV ad spending and sales was found to be statistically significant based on the F-statistic exceeding the critical F-value.

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    of 3

    Regression Analysis

    Table 5.1 Monthly Sales and Print Cost

    Month (this year) TV Ad ($000) Sales ($000)


    January 3 20
    February 13 38
    March 6 21
    April 4 26
    May 12 36
    June 5 29
    July 9 32
    August 8 25
    September 7 30
    October 10 44
    November 14 47
    December 11 40

    Step 1. Determine if there is a linear relationship of two variables on a graph.


    1. Plot the points on the graph with TV ad on the x-axis and sales on the y-axis.
    2. Draw the trend line. There seems to be a linear trend. Thus, we can use regression analysis to
    determine the relationship of the variables.

    Y-Values
    50

    45

    40

    35

    30

    25

    20

    15

    10

    0
    2 4 6 8 10 12 14 16 18

    Step 2. Determine the coefficients of the regression equation


    1. Compute the total figures

    ∑X =
    ∑Y =
    2. Determine the number of periods
    n =
    3. Compute the average figures.
    X −¿¿ = ∑X /n
    4. Compute ( X - X −¿¿) and the total
    −¿¿
    (X- X ) =
    5. Compute ( X - X −¿¿)( Y - Y −¿ ¿) and the total

    6. Compute the slope of the regression line, b 1


    b1 = ∑ ¿¿/ ∑ ¿¿
    7. Compute the y-intercept , b 0
    b0 =Y - b 1 X
    −¿ ¿ −¿¿

    Thus, the regression formula is

    Table 5.2 Coefficient of the Linear Equation

    −¿¿ −¿¿
    Period X Y (X- X ) (X- X )( Y -
    −¿ ¿
    Y )
    1 3 20 -5.5 67.82
    2 13 38 4.5 28.49
    3 6 21 -2.5 28.33
    4 4 26 -4.5 28.49
    5 12 36 3.5 15.16
    6 5 29 -3.5 11.66
    7 9 32 0.5 0.17
    8 8 25 -0.5 3.67
    9 2 30 -1.5 3.50
    10 10 44 1.5 17.5
    11 14 47 5.5 80.67
    12 11 40 2.5 19.17
    Total 102 388 0 304.67
    Average values Coefficients
    Period (n) 12 12 b0 29.27
    Average 8.5 32.33 b1 0.36

    Step 3. Predict the monthly sales when TV ad is between 0 and $19,000 at $1,000 inteval

    Table 5.3 with different values of TV Ad Cost


    X Y^ X Y^
    0 29.27 10 25.67
    1 28.71 11 25.31
    2 28.55 12 24.95
    3 28.19 13 24.59
    4 27.83 14 24.23
    5 27.47 15 23.87
    6 27.11 16 23.51
    7 26.75 17 23.15
    8 26.39 18 22.79
    9 26.03 19 22.43

    Example 5.2 Bench Glorietta (II)

    Jefferson, the Store Manager of Bench Glorietta Branch in Example 5.1, wants to determine if the
    relationship between monthly sales and TV ad cost is significant. He wants to make conclusion at a 5%
    level of significant
    Is the relationship significant? What is the coefficient of determination?

    Table 5.4 Level of Significance

    Analysis of Variance (ANOVA)


    Significance level α 0.05

    Step 1. Determine the Pearson correlation coefficient (Table 5.5)


    1. Compute the total sales
    2. Determine the number of independent variables:
    3. Determine the number of periods.
    4. Compute the average figure
    Y −¿ ¿ = ∑Y / n
    5. Compute ¿ ¿:
    6. Compute the forecast:
    7. Compute ¿ ¿:
    8. Compute ¿ ¿
    9. Compute the total values
    10. Compute the coefficient of determination
    11. Compute the coefficient of correlation
    12. Compute the sample variance
    13. Compute the standard deviation

    Table 5.5 Sum of Squares


    2 2
    X Y (Y - Y −¿ ¿ ¿ Y¿ (Y - Y ¿ ¿2 (Y ¿- Y −¿ ¿ ¿
    3 20 105.06 28.19 67.08 17.14
    13 38 60.06 24.5 179.83 59.91
    6 21 85.56 27.11 37.33 27.25
    4 26 18.06 27.8 3.35 20.25
    12 36 33.06 24.95 122.10 54.46
    5 29 1.56 27.47 2.34 23.62
    9 32 3.06 26.05 35.64 39.69
    8 25 27.56 26.39 1.9 35.28
    2 30 0.06 26.75 10.56 31.14
    10 44 189.06 25.67 336 44.36
    14 47 280.56 24.23 518.47 65.61
    11 40 95.06 25.31 215.80 49.28
    Total 898.22 314.52 1530.43 467.99
    K 1 SST ∑Y¿ SSE SSR
    Average Correlation Deviation
    N 12 r2 0.55 s2 1.81
    Y 32.33 r 0.74 s 1.34

    Step 2. Determine if the relationship is significant (Table 5.6)

    1. Determine the degrees of freedom


    2. Compute the mean sum of squares
    3. 3. Determine the F-statistic:
    4. Determine the critical F-value

    Table 5.6 Analysis of Variance (ANOVA)

    ANOVA df SS MS α 0.05
    Regression 1 467.99 467.99 F 258.56
    Residual 10 1530.43 1.81 Fu 0.31
    Total 11 1998.42 *App. B F> Fu? YES

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