User Account

All Pages

Regression Analysis, Applied Statistics

Assignment Help:
Question 3
25 marks

Your employer, Quick Hit Agency (QHA), is a debt collections agency. The company specializes in collecting small accounts. QHA does not deal in large accounts and does not take on risky collections, such as those in which the debtor tends to be chronically late in payments or is known to be hostile.
To distinguish itself from competing collection agencies, the company wants to establish a reputation for collecting delinquent accounts fast. The marketing department has just suggested that QHA adopt the slogan:
“Under 60 days or your money back!“
At the last staff meeting in which this slogan was proposed, the marketing department was asked how they arrived at the number 60. You found the reply unsatisfactory at best: “Well, 60 sounded like a nice round number.”
Since you work as an accountant at QHA, you have access to account balances. You suspect that the number of days to collect the payment is related to the size of the bill. If this is the case, you may be able to estimate how quickly certain accounts are likely to be collected, which, in turn, may assist the marketing department in determining an appropriate level for the money-back guarantee.
To test this theory, you’ve taken a sample of accounts closed out during the months of January through June. The data set includes the initial size of the account and the total number of days to collect payment in full. QHA deals in both residential and commercial accounts and you’ve collected data from both groups. The first 48 observations in the data set are residential accounts and the second 48 are commercial accounts. QHA has approximately equal numbers of residential and commercial accounts so the samples are of the right size.
In the worksheet, the variable Late is the number of days the payment was overdue, and the variable Bill is the amount of the bill in dollars.
Your submission should be in the form of a report commencing with an Executive Summary which includes a recommendation on the feasibility of the 60- day money back guarantee. The next section should be titled Exploratory Analysis and provide an initial examination of the data. The final section titled Regression Analysis should decide whether the size of the bill a useful predictor of the number of days the payment is overdue.
You should make effective use of StatToolsTM output. Results should be reported using the appropriate templates.
Please DO NOT remove any data.
Page limit: Maximum 7 pages including all diagrams

Related Discussions:- Regression Analysis

Median, Median Median is a position average. It is the value of middle ...

Median Median is a position average. It is the value of middle item of a variable when the items are arranged according to their values either in ascending or descending order.

Multivariate analysis, Multivariate analysis involves a set of techniques t...

Multivariate analysis involves a set of techniques to analyse data sets on more than one variable. Many of these techniques are modern and often involve quite sophisticated use of

Solve the normal distribution problem, Assume that the normal distribution ...

Assume that the normal distribution applies and find the critical z value(s). A = 0.04; H1 is mean ≠ 98.6 degrees Fahrenheit. Dteremine the value of Z. Find the value of the

Write down the payoff matrix, Two individuals, player 1 and player 2, are  ...

Two individuals, player 1 and player 2, are  competing in an auction to obtain a valuable object. Each player bids in a sealed envelope, without knowing the bid of the other player

Linear regression mode, The State Department of Taxation wishes to investig...

The State Department of Taxation wishes to investigate the effect of experience, x, on the amount of time, y, required to fill out Form ST 1040AVG, the state income-averaging form.

Decision making ., it is said that management is equivalent to decision mak...

it is said that management is equivalent to decision making? do you agree? explain

LPP, b. A paper mill produces two grades of paper viz., X and Y. Because of...

b. A paper mill produces two grades of paper viz., X and Y. Because of raw material restrictions, it cannot produce more than 400 tons of grade X paper and 300 tons of grade Y

Simple regression analysis, Construct your initial multivariate model by se...

Construct your initial multivariate model by selecting a dependent variable Y and two independent variables X. Clearly define what each variable represents and how this relates t

Difference between correlation and regression analysis, Difference between ...

Difference between Correlation and Regression Analysis 1. Degree and Nature  of Relationship: Coefficient of correlation measures   the degree  of covariance  between two vari

Harmonic mean, Harmonic Mean  The harmonic mean  also called harmonic  ...

Harmonic Mean  The harmonic mean  also called harmonic  average, in the total numbers of items of variable divided by the sum of r reciprocals of the values of the variable. In

Write Your Message!

Captcha
Order Assignment

Featured Services

Order Now

Popular Subjects

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd