Organizations this day and age tend to face an increasingly competitive job environment, both within the local markets and in the global arena. These businesses often face challenges from leaner, highly dynamic fast paced companies. Small business organizations consistently have to search for a more effective way to deliver policies and increase scales of efficiency. In this fast moving environment, many companies are finding that their existing projects and programs are not sufficient in accommodating with the changes to enhance their current sales programs, benefits and financial tracking. Managers constantly struggle during the attempt of finding ways to move their businesses forward.
Description of the Regression AnalysisRegression analysis is a statistical tool used in analyzing relationships between two quantitative variables based on the value of another. (Doane and Steward, 2007, Ch.12) 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 selected data observations.
Team B feels that many of the healthcare businesses within the economic sector of our data set is feeling the pressure of their sales; however, many of the businesses believe that a reduction of pharmaceutical sales will cause a decrease in their gross profits. Some believe that if the products are not readily available, customers will look elsewhere to make these purchases.
Hypothesis StatementWe would expect that the sales would have a positive effect on the gross profit for each of the Health Care/Pharmaceutical Industries within the Global Financial Performance Data Set. As we set up Team B's regression analysis we conclude that during our testing, sales is selected as our independent variable (X) and that the gross profit is the dependent variable (Y).
H0: Bj = 0H1: Bj > 0Team B will use this hypothesis test for the predictors Xj.