This 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. The goal of regression analysis is to determine the values of parameters for a function that cause the function to best fit a set of data observations.
Describe selected research problem.
VMI is a custom architectural millwork company located in Charlotte, North Carolina that services the eastern United States. VMI features quality products made in house by skilled artisans. They advertise extensively on radio and in print emphasizing high-end quality products and project management services. Receptionists screen potential clients and classify them by simply asking "How did you hear about us?". The owners would like to review the relationship between sales revenue and the amount spent for print advertising and radio spots.
Perform regression analysis.
The dependent variable is revenue.
The amount spent on the combination of print and radio advertising is the independent variable. The regression analysis performed by the team will determine the relationship between the amount of advertising dollars spent and the revenue gained.
For an analysis such as this one of Advertising Value, we have a data file containing the values of the dependent and independent variables for a set of observations. In this example, each month's record of expenses was compared to the revenue gained. The more observations we have, the more accurately we can estimate the parameters.
Variables: Value, advertising dollars spent monthly, revenue taken in monthly
Parameter: Money spent, Money the regression analysis performed used a twelve-month revenue statement to perform this regression analysis shown below.
Interpret the results.
The coefficient of 0.928814 and 0.921695 have equal strength, both indicate very strong correlation between the variables.
Here is a plot...