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Regression Analysis Paper ( The Excel Spreadsheet Is Not Included)

490 words - 2 pages

Regression Analysis PaperIntroductionThis paper, will detail a research problem, show a regression analysis, interpret the results, state the limits of the results, and describe the significance of this analysis to the organization.Describe selected research problemBio silk is a spa that services the Houston area. The Bio silk Spa features quality products made by Farouk Systems, Inc. They advertise extensively on radio and Television emphasizing high-end quality services. The owner would like to review the relationship between sales and the amount spent advertising on Fox News.Perform regression ...view middle of the document...

In this example each month record of expenses was compared to the revenue gain. The more observations we have, the more accurately we can estimate the parameters.Variables: Value, advertising dollars spent monthly, revenue taken in monthlyParameter: Money spent, Money The regression analysis performed used a twelve-month revenue statement to perform this regression analysis shown below.Interpret the resultsThe coefficient of 0.928814 and 0.921695 have equal strength, both indicate very strong correlation between the variables.Here is a plot of a linear function fitted to a set of data values. The actual data points are marked with ''blue dots''. The pink line represents the predicted revenue.For this scatter diagram, there is very little scatter about the line. This indicates there is a very strong relationship between revenue and advertising dollars spent.State the limits;The sample size is bounded by the values +1.00 and -1.00 when divided by(N-1).Describe the significance of this analysis to the organizationThe implication is that the amount money spent on advertising is correlated to the amount of revenue gained. As the amount of money spent on advertising increases the amount of revenue increases. Farouk, the owner of Bio Silk, was able to cost justify a increase of advertising with Fox News based on the trend line of the regressionanalysis.

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