Question
Ashland MultiComm Services needs to accurately forecast monthly total of new subscriptions. An analyst is looking for factors that might help in predicting new subscriptions.
Ashland MultiComm Services needs to accurately forecast monthly total of new subscriptions. An analyst is looking for factors that might help in predicting new subscriptions. She collected data for the number of new subscriptions and hours spent on telemarketing for each month for the past two years. Data is listed below (24 data counts in total)
a. Analyze the data and develop a simple linear regression model to predict the number of new subscriptions for a month, based on the number of hours spent on telemarketing for new subscriptions.
b. If you expect to spend 1,200 hours on telemarketing per month, estimate the number of new subscriptions for the month. Indicate the assumptions on which this prediction is based. Are these assumptions valid? Explain.
c. What would be the danger of predicting the number of new subscriptions for a month in which 2,000 hours were spend on telemarketing?
Hours | New Subscriptions |
1224 | 5357 |
1458 | 6177 |
1006 | 4795 |
1395 | 5692 |
1131 | 4312 |
921 | 3421 |
704 | 2624 |
1154 | 4087 |
1168 | 4934 |
803 | 2546 |
830 | 3591 |
981 | 4271 |
1435 | 5836 |
1349 | 5201 |
965 | 3775 |
985 | 3592 |
1117 | 4566 |
840 | 2974 |
1412 | 5673 |
940 | 3554 |
1090 | 4399 |
1498 | 6143 |
1240 | 4827 |
1055 | 5418 |
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