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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
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, show 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 |
36.14 | 26.58 |
38.33 | 26.07 |
43.54 | 29.6 |
26.17 | 20.79 |
42.55 | 28.93 |
33.58 | 21.84 |
27.85 | 19.94 |
33.61 | 20.85 |
34.03 | 25.14 |
37.57 | 24.54 |
35.26 | 25.98 |
44.08 | 30.98 |
35.81 | 25.35 |
47.29 | 31.16 |
48.66 | 35.09 |
45.11 | 33.68 |
40.33 | 28.42 |
46.85 | 34.86 |
34.12 | 24.2 |
34.85 | 20.7 |
30.07 | 23.45 |
29.79 | 21.26 |
36.74 | 24.98 |
35.06 | 26.84 |
28.89 | 20.64 |
24.38 | 13.58 |
30.4 | 22.67 |
40.94 | 29.84 |
41.56 | 28.26 |
30.43 | 22.69 |
Evening Customers:
Purchase Revenue | Purchase Cost |
43.01 | 32.25 |
38.25 | 25.01 |
38.63 | 23.27 |
39.17 | 28.64 |
34.51 | 22.47 |
37.02 | 25.18 |
36.87 | 25.07 |
37.64 | 26.59 |
37.93 | 22.79 |
35.88 | 27.4 |
39.59 | 26.92 |
41.81 | 26.43 |
35.27 | 23.98 |
38.39 | 27.11 |
56.01 | 35.09 |
40.92 | 29.83 |
33.83 | 21.01 |
41.24 | 29.04 |
29.99 | 19.39 |
50.61 | 36.42 |
36.21 | 26.62 |
47.07 | 30.01 |
36.85 | 28.06 |
40.1 | 25.26 |
39.26 | 25.69 |
40.89 | 29.81 |
33.05 | 23.48 |
33.85 | 20.02 |
27.24 | 20.52 |
38.08 | 24.9 |
All Customers:
Purchase Revenue | Purchase Cost |
36.14 | 26.58 |
38.33 | 26.07 |
43.54 | 29.6 |
26.17 | 20.79 |
42.55 | 28.93 |
33.58 | 21.84 |
27.85 | 19.94 |
33.61 | 20.85 |
34.03 | 25.14 |
37.57 | 24.54 |
35.26 | 25.98 |
44.08 | 30.98 |
35.81 | 25.35 |
47.29 | 31.16 |
48.66 | 35.09 |
45.11 | 33.68 |
40.33 | 28.42 |
46.85 | 34.86 |
34.12 | 24.2 |
34.85 | 20.7 |
30.07 | 23.45 |
29.79 | 21.26 |
36.74 | 24.98 |
35.06 | 26.84 |
28.89 | 20.64 |
24.38 | 13.58 |
30.4 | 22.67 |
40.94 | 29.84 |
41.56 | 28.26 |
30.43 | 22.69 |
43.01 | 32.25 |
38.25 | 25.01 |
38.63 | 23.27 |
39.17 | 28.64 |
34.51 | 22.47 |
37.02 | 25.18 |
36.87 | 25.07 |
37.64 | 26.59 |
37.93 | 22.79 |
35.88 | 27.4 |
39.59 | 26.92 |
41.81 | 26.43 |
35.27 | 23.98 |
38.39 | 27.11 |
56.01 | 35.09 |
40.92 | 29.83 |
33.83 | 21.01 |
41.24 | 29.04 |
29.99 | 19.39 |
50.61 | 36.42 |
36.21 | 26.62 |
47.07 | 30.01 |
36.85 | 28.06 |
40.1 | 25.26 |
39.26 | 25.69 |
40.89 | 29.81 |
33.05 | 23.48 |
33.85 | 20.02 |
27.24 | 20.52 |
38.08 | 24.9 |
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