These problems are to use regression methods. Please use the attached excel sheet for the solutions.
Please provide the explanations and functions used for each problem.
Data found in Assignment 3 Data excel file.
Problem 1
A mail-order catalog business maintains a warehouse for distribution of products ordered. Management is currently investigating what factors affect distribution costs. Data has been collected for the past 24 months indicating warehouse distribution costs, sales, numbers of orders and average order processing time.
1. Perform regression analysis to determine how the three variables affect distribution costs. Show the final model and the work needed to reach this result. Use Alpha = .01 to determine variables to remove from model
2. Would you use this model? Why or why not?
3. Given: Sales = $475,000, number of orders = 4000, average processing time = 25 minutes, calculate predicted distribution costs.
Problem 2:
An anthropologist wants to test whether demographic data can be used to predict the female life expectancy in countries. Data has been collected for the following variables: infant mortality rate, percent population increase, female literacy rate, fertility rate, caloric intake, population density, death rate, and birth-to-death ratio. Use Alpha = .01 to determine variables to remove from model
1. Can the variables be used to predict female life expectancy in a country?
2. Write out the equation of the final model. Be sure to show the regression tables and decisions made
to reach the final model.
Problem 3
We wish to determine the impact of Specification Buying, X11, on Satisfaction Level, X10. To do so we will split the Hatco data file into two separate data sets based on the Specification Buying, X11. This variable has two categories:
1=employs total value analysis approach, evaluating eachpurchase separately;
0 = use of specification buying.
Sort the entire Hatco data set based on Specification Buying. This will create two separate groups of records. Those records with X11 = 0 and those records with X11 = 1. Treat these as two distinct data sets.
For the 2 data sets, X11 = 0 and X11 = 1, perform regression analysis on Satisfaction Level X10 as a function of the first seven variables (Delivery Speed, Price Level, Price Flexibility, Manufacturer Image, Service, Salesforce Image, Product Quality). Use Alpha = .01 to determine variables to remove from model
For X11 = 0 and X11 = 1:
Compare the two models and explain the differences between the two models. From a business perspective, why do they differ?
Attachment:- Assignment-3-Data.xlsx