Question
A major sausage producer has an office in Wolfsburg, Germany. The sales manager of the office is evaluated based on the number of new clients
A major sausage producer has an office in Wolfsburg, Germany. The sales manager of the office is evaluated based on the number of new clients signed up every quarter. The following data reflects the number of new customers added during each quarter between 2016 and 2019.
Year | Quarter | No. of Clients |
2016 | 1 | 555 |
2016 | 2 | 569 |
2016 | 3 | 522 |
2016 | 4 | 623 |
2017 | 1 | 589 |
2017 | 2 | 624 |
2017 | 3 | 601 |
2017 | 4 | 670 |
2018 | 1 | 631 |
2018 | 2 | 704 |
2018 | 3 | 673 |
2018 | 4 | 755 |
2019 | 1 | 721 |
2019 | 2 | 771 |
2019 | 3 | 769 |
2019 | 4 | 844 |
a. Calculate the multiple linear regression equation using quarterly data as dummy variables. (6 marks) b. Interpret each slope and the intercept in the multiple linear regression equation from part a. Calculate a 90% confidence interval for each variable slope and assess whether it is statistically significant. (6 marks) c. Create a forecast for 2020 and 2021. (3 marks)
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