Qnt. 5040 – Mini Report #1
Qnt. 5040 – Mini Report #1
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Date Created: 11/14/15
Qnt 5040 Mini Report 1 Regressions Maximum Points 5 Excel File Needed The Prescott Mini Stores Franchise Problem Regression 2014 Li Shop Star Bright for the best deals in town a The Prescott Mini Stores Franchise Problem Introduction Mack Stewart president and CEO of the Star Bright Stores headquartered in Prescott Florida is worried about his franchise operation Mack knows that his company s future depends on growing his business and by attracting more potential franchisees to purchase stores In order to attract more individuals he has kept statistics on 27 franchise owners spread out over several states each with different characteristics While he somewhat understands the data he has contracted with you a local expert in statistics to evaluate the data and to recommend to him the type of franchisee he should pursue Your Tasks Using the Excel data file1 that has been provided you are to completely answer the following questions 1 What is the current status of the 27 franchises 1 To do this you will create a onevariable summary using StatTools and analyze such data as i The net sales over the past year ii Sizes of the franchisee s store iii The inventory that the various stores have on hand during the year iv The amount the stores spent on advertising during the year v How many families live in the districts where the stores are located vi How many competing stores are in those districts and what does this tell you about how successful the Star Bright franchises are and vii What does the skewness and kurtosis show if anything you about these data 2 Doing two QQ plots do you consider the data for net sales and advertising to be normal or not and why 3 Doing a correlation in StatTools and using all six of the variables how are each of these variables correlated to each other Which ones are important or unimportant in the case study to net sales and why Again be specific 4 Doing a scatterplot of net sales versus number of competitors in the district 1 Note The franchise number is a place holder and is not included in these data You may evaluate groups of franchise owners for instance ones that are larger than others or ones with more or less competition as a group 2 Remember the franchise number is just a place holder 1 Adding a trend line along with the equation and the Rsquared value to the plot what do these tell you about the data 2 What does the equation tell you about the impact of these two variables and what does the rsquared value tell you Next do a multiple regression using net sales as the dependent variable and all other variables as independent variables 1 Do any of the variables have a tvalue that is greater than the alpha 05 for this assignment If so delete them and rerun the regression and compare and contrast the old regression versus the new regression without one or more of the variables 2 Is the Fratio for thisthese regressions significant Why 3 Is the rsquared values for thisthese regressions appear to be valid Does it show that it explained a sufficient amount of the total variation Using the coefficients from this regression estimate the net income for the following typical franchise operations NOTE If vou have deleted anv of the sziables because thev exceed alpha then only use those variables that apply to the new regression If you have not deleted any variables than use all of the data found below Explain in the report how you came up with the projected values for these homes The completed Table One below must be included in your mini report Table 1 Typical Franchise Holders of Star Bright Mini Stores3 Franchise Square Inventory Advertising Size of the Number of Projected Net Number footage in in 1000 annual district in competing Income for this 1000s budget in thousands stores franchise in 1000s of families dollars 1 55 105 26 15 2 2 22 298 31 33 3 3 35 359 44 68 8 4 55 540 96 97 9 5 75 689 159 160 14 Square footage in thousands the amount of square footage for this store Inventory the annual amount of inventory held by this store Advertising the annual amount of advertising spent by this store Size of the district in thousands of families how many families live in this district from the US Census Number of competing stores in the district how many similar stores are found in this district exclusive franchise area Projected net income for this franchise using the coefficients from the regression and the values found in this table what is the projected annual net income for this store 3 Insert this table into your report with the projected selling value column completed 7 Based on the projected net income of these franchise stores what types of franchisees should Mack be seeking Again be specific take each variable into consideration when you provide this answer Your recommendation should be no more than 300 words Submit your mini report by the date indicated in the weeklymonthly calendar for your section Adding a Trendline to 3 Graph in Word First create the XY scatterplot graph in Excel as shown by your professor during the chats F Qelete Reset ta hu lgti 2 Change Series Cheri 1 EQEIS ir39ie ESIII 39 data point in thr lect that option i Close 4 with several opt I39Ef39i llf39iE til 39 u I I t quot1539 Trendllne Dptlone Trendg39Regressien Type FIE 3 i Exponential HI rquot Iquot quotFquot Linear 1d Soft Edges 1quot Lyarithmic Ki Eglyngrnial Orgier 2 39139 PD EF v v Having Average Pgried 2 Trendline Name iv automa c Linear Series j gustem I is Close ce that one option available ype of trendline you want 1y the equation and the rsquared value 3 on the graph and select You can now right click on the graph and paste it into your Word document e sure to explain to the reader how to read and understand the graph what the trendline means and what the equation and rsquared values each mean
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