Use Slipper File Revenue Tab

1. Do a multiple regression usingPrice ($/per unit),Social Media Ads ($),Bulk Sales to predictRevenue for Slipper House LLC a Slipper manufacturer on Oahu.. Then use the results to predictRevenue on CEI tab with a 95% prediction interval estimate when price is = $ 5.00, Advertising = 3.5, and Bulk sales . Write up a report of your analysis. You should include the following in your report:
2. Interpretation of R-squared, Adjusted R-squared, Multiple R, and standard error and what these say about how good the regression is for predicting Revenue from the independent variables.
3. Write, theequation (must include Coefficient numbers)
4. Next interpretation of the 3 slopes. Which of these variables decrease revenues and which increase revenues? Use the proper units when you do the interpretations. Take care to interpret slopes for dummy variables appropriately.
5. Write a hypotheses for the entire model. Also write a hypothesis for each individual variable and test with the T-Test which ones are slope Use significance at the =.05 for all.
6. Should any terms be dropped? If so, which ones and why?
7. Check the assumptions of linearity for Price and advertising (no need for the Bulk sales variable), This is Linearity, independence, Normality, and constant variability. All plots are given to you in the Residuals tab in the excel results file. PHStat does not create the linearity plots. Write a statement detailing what you found and recommendations for addressing any issues present.
8. A statement explaining the results of the 95% prediction interval (from your CEI Tab).
9. Now test statistically if there is evidence of an interaction for this by adding the interaction term Price x Advertisement and run the regression with all the terms. Explain the results and if this suggests you should add the interaction term to your model. Don't forget to explain why or why not!

Make sure you include relevant excel results you used for each part above. (7.4 pts)

Note: writing a case report like this may be a problem on the final exam.

Use Slipper File Costs Tab

1. Do a multiple regression usingMaterials and Labor($100 increments),Variable Costs ($100 increments)to predictCosts for Slipper House. Then use the results to predictcosts on CEI tabwith a 95% confidence whenMaterials /Labor for 450 units ,Variable costs for 450 units, Write up a report of your analysis. You should include the following in your report:
2. Interpretation of R-squared, Adjusted R-squared, Multiple R, and standard error and what these say about how good the regression is for predicting Revenue from the independent variables.
3. Write, the equation (must include Coefficient numbers)
4. Next interpretation of the 2 slopes. Which of these variables increase costs and which decrease Costs? Use the proper units when you do the interpretations.
5. Write a hypotheses for the entire model. Also write a hypothesis for each individual variable and test with the T-Test which ones are slope Use significance at the =.05 for all.
6. Should any terms be dropped? If so, which ones and why?
7. Check the assumptions of linearity for Materials/Labor and Variable Costs, This is Linearity, independence, Normality, and constant variability. All plots are given to you in the Residuals tab in the excel results file. Write a statement detailing what you found and recommendations for addressing any issues present.
8. A statement explaining the results of the 95% prediction interval (from your CEI Tab).
9. Compare the output from Revenue and the Output for Costs and write a short paragraph on the Profit for the upcoming year. Remember Profit is Revenue Minus Costs. Tell me how confident you are that the Profit will be the number you state. If costs are higher than revenue then you will adjust price or advertising to fix the deficit.

Make sure you include relevant excel results you used for each part above.

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