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Regression Example

A linear regression was performed to analyze the relationship between promotional expenses and sales. The multiple R value of 0.9787082586 indicates a strong positive correlation. About 95.78698554% of the variation in sales is explained by promotional expenses, as indicated by the R-square value. The F value of 113.6799 and significance of 0.0001256059 show that the relationship is statistically significant. The regression equation is: Predicted Sales = 1.4310344828 * Promotional Expenses - 0.0172413793

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prawool
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17 views

Regression Example

A linear regression was performed to analyze the relationship between promotional expenses and sales. The multiple R value of 0.9787082586 indicates a strong positive correlation. About 95.78698554% of the variation in sales is explained by promotional expenses, as indicated by the R-square value. The F value of 113.6799 and significance of 0.0001256059 show that the relationship is statistically significant. The regression equation is: Predicted Sales = 1.4310344828 * Promotional Expenses - 0.0172413793

Uploaded by

prawool
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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SUMMARY OUTPUT

Regression Statistics
Multiple R
0.9787082586
R Square
0.9578698554
Adjusted R Square
0.9494438265
Standard Error
1.0221680812
Observations
7
ANOVA

0.9578698554 = 95% of sales is influenced by promotion


1.0221680812

ANalysis Of VAriation
113.6799
df
SS
MS
F
1 118.775862069 118.7759 113.6799
5
5.224137931 1.044828
6
124

Regression
Residual
Total

Intercept
Promotional Expenses

Coefficients
Standard Error
t Stat
P-value
-0.0172413793
1.015854444 -0.016972 0.987115
1.4310344828 0.1342172445 10.66208 0.000126

df = degree of freedom
F= Snedecon's F Ratio
RESIDUAL OUTPUT
Observation

Predicted Sales
Residuals
1
10
2
2 14.2931034483 -0.2931034483
3 12.8620689655 0.1379310345
4
5.7068965517 -0.7068965517
5
15.724137931
-0.724137931
6
7.1379310345 -0.1379310345
7
4.275862069
-0.275862069

SS = Sum of Squares

les is influenced by promotion

0.0001256059
Significance F
F critical
0.0001256059 6.6078909737

Lower 95%
Upper 95%
Lower 95.0% Upper 95.0%
-2.6285783607 2.5940956021 -2.6285783607 2.5940956021
1.086018072 1.7760508936 1.086018072 1.7760508936

um of Squares

MS = Mean Square

Promotional Expenses

Sales
7
12
10
14
9
13
4
5
11
15
5
7
3
4

Sales
16
f(x) = 1.4310344828x - 0.0172413793
R = 0.9578698554

14
12
10
8
6
4
2
0
2

10

Sales

x - 0.0172413793
Sales
Linear (Sales)

10

11

12

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