Construct a simple regression model

Reference no: EM132518013

BUS 306 Quantitative Business Analysis - Emirates College of Technology

Problem 1: Problem solving

The Production Cost/crate (AED) and Monthly Sales Volume (hundreds of crates) of a variety of truffles were recorded in a sample of 6 whole sale vegetables markets

Vegetables Market	1	2	3	4	5	6
Production cost/crate (AED)	68	64	60	80	72	76
Monthly sales volume (crates×100)	42	45	36	60	50	61

Question 1. Construct a simple regression model to predict the Monthly Sales Volume by Production Cost.

Question 2. Find the predicted Monthly Sales Volume on that truffles variety in a vegetables market where the Production cost is AED 90/crate.
Question 3. Compute r2 and r for this model. Interpretation their values in this case.

Question 4. Calculate the prediction error for the Monthly Sales Volume value of5000crates based on the regression model constructed previously.

Question 5. Now we want to test the significance of the constructed regression model, by the hypothesis test on whether a linear relationship exists between the Monthly Sales Volume and the Production Cost/crate or not.
a. Construct the ANOVA table.
b. Perform the test at the significance level α = 0.05, and the level α = 0.01.

Problem 2: Problem solving

Ahmed's café specialized in selling hot drinks, is attempting to find the best forecast for the month 7 sales. The café's data on historical monthly sales for the past six months is presented in the following table:

Month	1	2	3	4	5	6	7
Sales ($)	10,000	12,000	13,000	16,000	19,000	23,000	-

Question 1. Compute the sales forecast for month 7using the simple moving average of order 2, then of order 3. Compute the whole series.

Question 2. Compute the sales forecast for month 7 using the weighted moving average of order 2, with weights from the most recent month as 6 and 9, then of order 3 with weights from the most recent month as 5, 3, and 2. Compute the whole series.

Question 3. Compute the sales forecast for month 7using the exponential smoothing, assuming that F1= $ 9,000, with α= 0.2 then with α= 0.3.

Attachment:- Quantitative Business Analysis.rar

Attachment:- Instructions.rar

Reference no: EM132518013

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