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NEED HELP WITH QUESTIONS M AND N ENTERPRISE INDUSTRIES Enterprise Industries produces Fresh, a brand of liquid detergent. In order to more effectively manage its
NEED HELP WITH QUESTIONS M AND N
ENTERPRISE INDUSTRIES Enterprise Industries produces Fresh, a brand of liquid detergent. In order to more effectively manage its inventory, the company would like to better predict demand for Fresh. To develop a prediction model, the company has gathered data concerning demand for Fresh over the last 33 sales periods. Each sales period is defined as one month. The variables are as follows: Demand =Y= demand for a large size bottle of Fresh ( in 100,000) Price = the price of Fresh as offered by Enterprise Industries AIP = the average industry price Adv = Ent. Industries Advertising Expenditure (in \$100,000) to Promote Fresh in the sales period. Diff = AIP - Price = the "price difference" in the sales period a) Make time series scatter plots of all five variables (five separate graphs). Insert trend line, equation, and R-squared. Observe graphs and provide interpretation of results. b) Construct scatter plots of Demand vs. Diff, Demand vs. Adv, Demand vs. AIP, and Demand vs. Price. Insert fitted linear line, equation, and R-squared. Observe graphs and provide interpretation. Note that Demand is always on the Y axis. c) Obtain the correlation matrix for all six variables and list the variables that have strong correlation with Demand. High correlation is r>0.50. Explain your findings in plain language. n) Provide analytical conclusion for the case based on above analysisStep by Step Solution
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