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Q. # 1) What conditions would justify the assumption of a constant contribution margin per customer?Do you think those conditions are likely to hold here?
Q. # 1) What conditions would justify the assumption of a constant contribution margin per customer?Do you think those conditions are likely to hold here? To support your conclusions, do a scatter plot of the sample data, and then use the sample data to run a regression of purchase costs (dependent variable) on purchase revenues (independent variable). [Hint: What is the meaning of the intercept term of your regression results?]
Day Customers:
Purchase Revenue | Purchase Cost |
32.50 | 23.89 |
35.22 | 25.90 |
39.99 | 30.40 |
23.08 | 16.53 |
39.48 | 28.32 |
30.55 | 20.17 |
24.77 | 18.49 |
30.13 | 21.11 |
31.16 | 24.91 |
34.67 | 25.75 |
32.37 | 25.03 |
40.71 | 29.61 |
33.07 | 23.31 |
43.86 | 29.51 |
45.88 | 36.39 |
42.31 | 29.83 |
36.69 | 29.89 |
43.59 | 28.51 |
31.38 | 23.55 |
32.09 | 21.66 |
26.78 | 17.93 |
26.39 | 18.38 |
33.84 | 22.96 |
32.39 | 25.24 |
25.29 | 17.72 |
21.11 | 14.41 |
27.60 | 22.23 |
37.79 | 25.50 |
38.37 | 29.00 |
27.14 | 21.31 |
Evening Customers:
Purchase Revenue | Purchase Cost |
40.29 | 32.00 |
34.66 | 25.20 |
35.87 | 24.01 |
36.40 | 28.60 |
30.95 | 24.95 |
33.69 | 22.42 |
33.82 | 25.89 |
34.92 | 23.07 |
35.15 | 25.39 |
32.89 | 22.99 |
36.30 | 28.63 |
38.44 | 29.51 |
32.49 | 25.36 |
34.91 | 25.26 |
52.78 | 37.08 |
37.43 | 28.81 |
30.20 | 19.86 |
37.99 | 26.54 |
26.90 | 19.19 |
47.19 | 34.88 |
33.48 | 25.12 |
44.20 | 36.09 |
33.52 | 22.76 |
37.15 | 26.24 |
35.81 | 26.79 |
37.61 | 25.68 |
30.29 | 24.51 |
31.07 | 23.27 |
24.35 | 19.50 |
34.90 | 28.07 |
All Customers:
Purchase Revenue | Purchase Cost |
32.50 | 23.89 |
35.22 | 25.90 |
39.99 | 30.40 |
23.08 | 16.53 |
39.48 | 28.32 |
30.55 | 20.17 |
24.77 | 18.49 |
30.13 | 21.11 |
31.16 | 24.91 |
34.67 | 25.75 |
32.37 | 25.03 |
40.71 | 29.61 |
33.07 | 23.31 |
43.86 | 29.51 |
45.88 | 36.39 |
42.31 | 29.83 |
36.69 | 29.89 |
43.59 | 28.51 |
31.38 | 23.55 |
32.09 | 21.66 |
26.78 | 17.93 |
26.39 | 18.38 |
33.84 | 22.96 |
32.39 | 25.24 |
25.29 | 17.72 |
21.11 | 14.41 |
27.60 | 22.23 |
37.79 | 25.50 |
38.37 | 29.00 |
27.14 | 21.31 |
40.29 | 32.00 |
34.66 | 25.20 |
35.87 | 24.01 |
36.40 | 28.60 |
30.95 | 24.95 |
33.69 | 22.42 |
33.82 | 25.89 |
34.92 | 23.07 |
35.15 | 25.39 |
32.89 | 22.99 |
36.30 | 28.63 |
38.44 | 29.51 |
32.49 | 25.36 |
34.91 | 25.26 |
52.78 | 37.08 |
37.43 | 28.81 |
30.20 | 19.86 |
37.99 | 26.54 |
26.90 | 19.19 |
47.19 | 34.88 |
33.48 | 25.12 |
44.20 | 36.09 |
33.52 | 22.76 |
37.15 | 26.24 |
35.81 | 26.79 |
37.61 | 25.68 |
30.29 | 24.51 |
31.07 | 23.27 |
24.35 | 19.50 |
34.90 | 28.07 |
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