Regression Analysis Paper
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.
Describe selected research problem
Bio silk is a spa that services the Houston area. The Bio silk Spa features quality products made by Farouk Systems, Inc. They advertise extensively on radio and Television emphasizing high-end quality services. The owner would like to review the relationship between sales and the amount spent advertising on Fox News.
Perform regression analysis
The dependent variable is the value of the advertising of Fox News. The revenue spent for advertising, and the revenue gained are the independent variables. The regression analysis performed by team STAT 5 will determine the correlation between the number of advertising dollars spent and the revenue gain.
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 record of expenses was compared to the revenue gain. 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 of a linear function fitted to a set of data values. The actual data points are marked with ''blue dots''. The pink line represents the predicted revenue.
For this scatter diagram, there is very little scatter about the line. This indicates there is a very strong relationship between...