1. A worsted yarn manufacturer wants to determine a price of new yarn according to the prevailing prices of congeneric products in the market. Table1 shows the prices of eight worsted yarns in the market, together with three parameters of yarn count (Nm), wool portion (%) and color. As a marketing analyst, you are required to establish the relationship between yarn price and these parameters.

Table1. Yarn count, wool portion, color and worsted yarn price.
Yarn count (Nm)	Wool portion (%)	Color	Yarn price (HK$)
32	30	2	50
48	30	2	51
28	50	1	60
32	50	3	62
48	50	2	64
56	50	1	70
32	70	3	73
48	70	3	76

Use Stepwise to implement linear regression for the above data and answer the following questions (Note: Appropriate supporting outputs of SPSS should be included in your answers):

1. Which variables are included in the final model?
2. Establish a multiple regression equationfor the final model.
3. Explain whether thefinalmodel has a significant linear relationship.
4. Explain how well of thefinal regression model.
5. Explainwhich variable does nothave a significant linear relationship with yarn price.
6. If the manufacturer wants to determine a price for his new yarn of 40 Nm, 60% wool and dyed in color 2, what reference price would you like to suggest according to the price of congeneric products in the market?

Answers:

Use Bivariate to implement correlation analysis for the above data and answer the following questions(Note: Appropriate supporting outputs of SPSS should be included in your answers):

1. What is your conclusion on therelationship between Yarn Price and Yarn Count?
2. Explain which pairs of variable are significantly correlated?

Answers: