1. A property dealer has wants to estimate the sale price of its properties.

He has collected past data of the properties sold last year. a. State the multiple regression equation. b. Interpret the meaning of each of the slopes. c. Explain why the regression coefficient b0 has no practical meaning in the context of this problem. d. Can you use the equation for prediction? Explain. f. Determine the coefficient of multiple determinations and interpret its meaning. g. Determine the adjusted r2. Data File

Salesval, lastval in LKS Property Tax in 0000 Property in Town

Variables

Regression
[DataSet2] D:\Documents and Settings\Shailaja Rego\Desktop\property exam.sav

Model Summaryb Adjusted R Model 1 R .930a R Square .866 Square .850 Std. Error of the Estimate 24.41071 Durbin-Watson 1.704

a. Predictors: (Constant), Years since last appraisal, Property Tax, Value at last appraisal, Township b. Dependent Variable: Sale value of house

ANOVAb Model 1 Regression Residual Total Sum of Squares 134460.328 20855.896 155316.224 df 4 35 39 Mean Square 33615.082 595.883 F 56.412 Sig. .000a

a. Predictors: (Constant), Years since last appraisal, Property Tax, Value at last appraisal, ownship b. Dependent Variable: Sale value of house
Coefficients Standardized Unstandardized Coefficients Model 1 (Constant) Township Value at last appraisal Property Tax Years since last appraisal a. Dependent Variable: Sale value of house B -12.772 34.339 1.218 -2.061 7.252 Std. Error 18.012 13.602 .085 .862 1.506 .267 .963 -.250 .345 Coefficients Beta t -.709 2.525 14.399 -2.392 4.814 Sig. .483 .016 .000 .022 .000 95.0% Confidence Interval for B Lower Bound -49.338 6.726 1.046 -3.811 4.193 Upper Bound 23.793 61.953 1.390 -.312 10.310 .344 .858 .351 .745 2.911 1.165 2.847 1.342 Collinearity Statistics Tolerance VIF
a

2. A toy manufacturer wishes to forecast sales by sales territory. It is thought that the competitors sales, presence or absence of a company salesman and the school enrollment are the independent variables. (data and output given at the end of the paper as Toys) a. State the multiple regression equation. b. Interpret the meaning of each of the slopes. If the salesman increases the sales by at least 10%, the company would hire one. Should company hire the salesman?( assume average sales is 150 Lks. c. Explain why the regression coefficient b0 has no practical meaning in the context of this problem. d. Can you use the equation for prediction? Explain. f. Determine the coefficient of multiple determinations and interpret its meaning. g. Determine the adjusted r2.

Sales in thousands Competitor sales in thousands Sales agent present =1 absent= 0 School enrollment in thousands

REGRESSION /MISSING LISTWISE /STATISTICS COEFF OUTS CI R ANOVA COLLIN TOL /CRITERIA=PIN(.05) POUT(.10) /NOORIGIN /DEPENDENT Sales /METHOD=ENTER Competitors_Sales Sales_Agent School_Enrollment /PARTIALPLOT ALL /RESIDUALS DURBIN NORM(ZRESID) . Regression [DataSet2] C:\Documents and Settings\srego\Desktop\toys.sav
b Model Summary

Model 1

R R Square .975 a .951

Adjusted R Square .937

Std. Error of the Estimate 52.37972

DurbinWatson 1.550

a. Predictors: (Constant), School_Enrollment, Competitors_Sales, Sales_ Agent b. Dependent Variable: Sales

b ANO VA

Model 1

Regression Residual Total

Sum of Squares 583692.9 30179.989 613872.9

df 3 11 14

Mean Square 194564.315 2743.635

F 70.915

Sig. .000a

a. Predictors: (Constant), School_Enrollment, Competitors_Sales, Sales_Agent b. Dependent Variable: Sales

Coefficientsa Unstandardized Coefficients B Std. Error 430.771 98.861 -.806 .152 96.985 43.503 10.367 2.894 Standardized Coefficients Beta -.468 .235 .404 95% Confidence Interval for B Collinearity Statistics Lower Bound Upper Bound Tolerance VIF 213.178 648.364 -1.140 -.472 .575 1.739 1.237 192.734 .403 2.483 3.996 16.737 .351 2.849

Model 1

(Constant) Competitors_Sales Sales_Agent School_Enrollment

t 4.357 -5.312 2.229 3.582

Sig. .001 .000 .048 .004

a. Dependent Variable: Sales

a Collinearity Diagnostics

Model 1

Dimension 1 2 3 4

Eigenvalue 3.261 .650 .079 .011

Condition Index 1.000 2.239 6.445 17.493

(Constant) .00 .00 .03 .97

Variance Proportions Competitors_ Sales Sales_Agent .01 .01 .05 .24 .53 .55 .41 .20

School_ Enrollment .00 .00 .09 .90

a. Dependent Variable: Sales

a Residuals Statistics

Predicted Value Residual Std. Predicted Value Std. Residual

Minimum 175.1446 -71.52334 -1.920 -1.365

Maximum 821.4940 85.98900 1.245 1.642

Mean 567.2667 .00000 .000 .000

Std. Deviation 204.18705 46.42966 1.000 .886

N 15 15 15 15

a. Dependent Variable: Sales

Charts
Normal P-P Plot of Regression Standardized Residual

Dependent Variable: Sales

1.0

Expected Cum Prob

0.8

0.6

0.4

0.2

0.0 0.0 0.2 0.4 0.6 0.8 1.0

Observed Cum Prob

Partial Regression Plot

Dependent Variable: Sales

200.00

100.00

Sales

0.00

-100.00

-200.00 -200.00 -100.00 0.00 100.00 200.00 300.00

Competitors_Sales

Partial Regression Plot

Dependent Variable: Sales

150.00

100.00

50.00

Sales
0.00 -50.00 -100.00 -0.80 -0.60 -0.40 -0.20 0.00 0.20 0.40

Sales_Agent

Partial Regression Plot

Dependent Variable: Sales

100.00

50.00

0.00

Sales
-50.00 -100.00 -150.00 -10.00 -5.00 0.00 5.00 10.00

School_Enrollment

SAVE OUTFILE='C:\Documents and Settings\srego\Desktop\toys.sav' /COMPRESSED.

3. A consumer electronics company adopted an aggressive policy to increase sales of a newly launched product. The company has invested in advertisements as well as employed salesmen for increasing sales rapidly. The data collected over 24 months contains sales, number of salesmen, Advertisement expenses, number of showrooms and showroom age. (data and output given at the end as Electronics) Interpret the output. Mention the Regression equation. comment on if the regression model can be used for prediction. If it can be used, find 95% Confidence interval for the sales if Advertising expenses are 300, number of salesmen are 30, number of showrooms are 20 and showroom age is 15yrs Output for Electronics

REGRESSION /MISSING LISTWISE /STATISTICS COEFF OUTS CI R ANOVA COLLIN TOL /CRITERIA=PIN(.05) POUT(.10) /NOORIGIN /DEPENDENT Sales /METHOD=STEPWISE Salesmen Ad No_of_Showrooms Showroom_Age /PARTIALPLOT ALL /RESIDUALS DURBIN NORM(ZRESID) . Regression [DataSet1] C:\Documents and Settings\srego\Desktop\Electronics.sav

c Model Summary

Model 1 2

R R Square .808a .652 .906b .821

Adjusted R Square .637 .803

Std. Error of the Estimate 1759.86672 1294.31493

DurbinWatson 2.104

a. Predictors: (Constant), Ad b. Predictors: (Constant), Ad, Showroom_Age c. Dependent Variable: Sales

c ANO VA

Model 1

Regression Residual Total Regression Residual Total

Sum of Squares 1.3E+008 68136879 2.0E+008 1.6E+008 35180274 2.0E+008

df 1 22 23 2 21 23

Mean Square 127855983.6 3097130.858 80406294.21 1675251.146

F 41.282

Sig. .000a

47.997

.000b

a. Predictors: (Constant), Ad b. Predictors: (Constant), Ad, Showroom_Age c. Dependent Variable: Sales

Coefficientsa Unstandardized Coefficients B Std. Error (Constant) 1596.464 1164.152 Ad 27.387 4.262 (Constant) -1941.287 1170.153 Ad 19.062 3.654 Showroom_Age 417.109 94.041 Standardized Coefficients Beta .808 .562 .478 95% Confidence Interval for B Collinearity Statistics Lower Bound Upper Bound Tolerance VIF -817.839 4010.767 18.547 36.226 1.000 1.000 -4374.754 492.179 11.463 26.660 .736 1.358 221.540 612.678 .736 1.358

Model 1 2

t 1.371 6.425 -1.659 5.217 4.435

Sig. .184 .000 .112 .000 .000

a. Dependent Variable: Sales

c Excluded Variables

Model 1

Salesmen No_of_Showrooms Showroom_Age Salesmen No_of_Showrooms

Beta In -.306 a .295 a .478 a -.149 b .068 b

t -2.642 2.583 4.435 -1.430 .561

Sig. .015 .017 .000 .168 .581

Partial Correlation -.499 .491 .695 -.305 .125

Collinearity Statistics Minimum Tolerance VIF Tolerance .928 1.077 .928 .961 1.041 .961 .736 1.358 .736 .753 1.328 .597 .611 1.637 .468

a. Predictors in the Model: (Constant), Ad b. Predictors in the Model: (Constant), Ad, Showroom_Age c. Dependent Variable: Sales
a Collinearity Diagnostics

Model 1 2

Dimension 1 2 1 2 3

Eigenvalue 1.951 .049 2.924 .050 .026

Condition Index 1.000 6.323 1.000 7.617 10.640

Variance Proportions Showroom_ (Constant) Ad Age .02 .02 .98 .98 .01 .01 .00 .34 .87 .03 .66 .13 .96

a. Dependent Variable: Sales

a Residuals Statistics

Minimum Predicted Value 4218.9497 Residual -2212.31 Std. Predicted Value -1.699 Std. Residual -1.709 a. Dependent Variable: Sales

Maximum Mean 13610.67 8711.2500 2681.050 .00000 1.853 .000 2.071 .000

Std. Deviation 2644.21097 1236.76074 1.000 .956

N 24 24 24 24

Charts

Normal P-P Plot of Regression Standardized Residual

Dependent Variable: Sales

1.0

Expected Cum Prob

0.8

0.6

0.4

0.2

0.0 0.0 0.2 0.4 0.6 0.8 1.0

Observed Cum Prob

Partial Regression Plot

Dependent Variable: Sales

4000.00

2000.00

Sales

0.00

-2000.00

-100.00

-50.00

0.00

50.00

100.00

150.00

200.00

Ad

Partial Regression Plot

Dependent Variable: Sales

2000.00

Sales

0.00

-2000.00

-4000.00 -8.00 -6.00 -4.00 -2.00 0.00 2.00 4.00

Showroom_Age