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

Problem set for logistic regression, (1) What values can the response varia...

(1) What values can the response variable Y take in logistic regression, and hence what statistical distribution does Y follow? The response variable can take the value of either

Standard error, Standard Error The measure of reliability of the estima...

Standard Error The measure of reliability of the estimating equation that we have developed is given by standard error of estimate. The standard error of estimate represented b

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

MEASURING TREND, DISCUSS THE METHODS OF MEASURING TREND

DISCUSS THE METHODS OF MEASURING TREND

Root mean square deviation, Root Mean Square Deviation The standard d...

Root Mean Square Deviation The standard deviation is also called the ROOT MEAN SQUARE DEVIATION. This is because it is the ROOT (Step 4) of the MEAN (Step 3) o

Box plot of income, The box plot displays the diversity of data for the inc...

The box plot displays the diversity of data for the income; the data ranges from 20 being the minimum value and 1110 being the maximum value. The box plot is positively skewed at 4

Define sampling unit , Define sampling unit and population for selecting a ...

Define sampling unit and population for selecting a random sample in every case. a) 100 voters from a constituency b) 20 stocks of National Stock Exchange c) 50 account ho

Anova, how do you find if two way or one way

how do you find if two way or one way

Initial centroids data set, Find unlabeled data set test.txt and initial ...

Find unlabeled data set test.txt and initial centroids data set centroids.txt in the archive, both files have the following format: [attribute1_value attribute2_value ...

Linear regression, Linear Regression Generally, in two mutually related...

Linear Regression Generally, in two mutually related statistical series, the regression analysis based on graphic method. Under graphic method the values  of X and Y variable

Write Your Message!

Captcha
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!

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