Question
The Performance level.xlsx file contains performance information for a sample of 100 companies. Unused capacity is costly and an eager MBA student is trying to
The Performance level.xlsx file contains performance information for a sample of 100 companies. Unused capacity is costly and an eager MBA student is trying to explain why some companies use more of their available capacity than others. She has gathered some info as shown in the data file. Delivery speed is a measure of how long customers must wait after placing an order. Price level is a measure of how fast the company's prices have risen relative to their competition. Price flexibility is a measure of how fast the company is able to respond to cost changes in the market place. Manufacturing image and Salesforce image are based on subjective assessments by the companies' customers (a separate questionnaire using a simple Lickert scale was used to get this information). Overall service and Product quality have been taken from independent industry analyses published in trade journals. Firm size is a categorical variable that takes on a value of 1 if the firm's market capitalization is over $500 million.
Using capacity utilization as the dependent variable, estimate an appropriate model. Be sure to explain why you have included or excluded certain variables. Explain your thought processes thoroughly.
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