Excel Assignment Linear Regression - Predicting Sales based on Time Spent with Customers

Module 4 Excel Assignment Linear Regression

The manager of a company that relies on traveling sales persons to sell the company’s products wants to examine the relationship between sales and the amount of time a salesperson spends with each established customer who regularly orders the company’s products. He or she believes that sales can be predicted by the amount of time a sales person spends with a customer. The manager collects the data on 12 salespersons.

1. What is the predictor (independent) and response (dependent) variables for this problem?
2. Make a scatter plot for predicting sales from hours spent. Paste the scatter plot below.
3. Run regression analysis using excel with the data from the above table. Paste the regression output below and upload the excel file with your submission.
4. What is the regression equation for predicted Sales?
5. What would be the predicted Sales if the salesperson spent 5 hours with the customer?
6. The manager has decided to look at other factors related to each person’s sales. Below is the new sales data with multiple factors (i.e. hours, quarterly bonus, and a percentage discount given to customers). Answer the two bullet point below.

• Run regression analysis using excel with the data from the above table. Paste the regression output below and upload the excel file with your submission.
• Which factors are good predictors of sales? Write a short paragraph explaining your answer.