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ZIba Inc Acc

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Question;Ziba, Inc. has provided the following information regarding one of their products for the years 1986 through 2010.;1. Sales in $1,000,000 (Y);2. Advertising in $1,000 (X1);3. Price in $100 (X2);4. Competitor's Price in $100 (X3);5. Time (X4), where 1986 = 1.;The;data file ?Regression and Correlation Data-V10? is located in;Assessment 6 folder. Refer to that data file and perform the following;analyses and fully explain your results. a. Run a correlation analysis;and explain your results. Be sure to discuss the concept of;multicollinearity. b. Run a regression analysis relating sales (Y) and;all of the independent variables [Advertising (X1) through Time (X4).];Is the regression model significant? Explain how you arrived at your;answer. c. Which variables are significant and which are not? Explain;how you arrived at your answer. d. Drop the variable(s) that at 95%;confidence were not significant in part ?b? and run a new regression;analysis. Write your estimated regression equation. e. What is the value;of R-square you found in part ?d?? Fully explain the meaning of the;R-square that you found. f. Use the model of part ?d? and forecast sales;for 2011 through 2013, assuming the company is planning to increase the;price by 4% annually in years 2011 through 2013. Show your computations;and write your answers below. Year Your Sales forecasts 2011 2012 2013;Year Sales (Y) Advertising (X1) Price (X2) Competitor's Price (X3) Time;(X4) 1986 1578 400 21.00 20 1 1987 1678 580 21.19 22 2 1988 1800 678;23.10 19 3 1989 1850 776 23.30 21 4 1990 1900 874 25.40 21 5 1991 1950;972 25.63 21 6 1992 2000 1070 27.94 20 7 1993 2050 1168 28.19 22 8 1994;2100 1220 30.72 24 9 1995 2456 1272 31.00 18 10 1996 2812 1324 33.79 21;11 1997 3168 1376 34.10 23 12 1998 3524 1379 37.16 23 13 1999 3880 1382;37.50 17 14 2000 3900 1385 40.87 18 15 2001 3920 1388 41.24 16 16 2002;3940 1391 44.95 25 17 2003 3960 1399 45.36 26 18 2004 3980 1407 49.44 28;19 2005 4000 1415 49.88 18 20 2006 4020 1423 54.37 24 21 2007 4040 1460;54.86 23 22 2008 4060 1497 59.80 24 23 2009 4080 1534 60.34 21 24 2010;4100 1571 65.77 23 25

 

Paper#51767 | Written in 18-Jul-2015

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