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    Soren Chimal Case

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    Amit Mishra
    Ronit Agarwal submitted their assignment for the course Statistical Methods for Management Decisions. They affirmed the ISB Honour Code and began answering questions. For the first question, they described the positive linear relationship between store size and monthly sales. Their next responses interpreted the regression results, proposed a hypothesis test to verify the relationship, and provided predictions for monthly sales based on the regression equation. They concluded by analyzing the correlations between the variables.

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    Soren Chimal Case

    Uploaded by

    Amit Mishra
    20 views5 pages
    Ronit Agarwal submitted their assignment for the course Statistical Methods for Management Decisions. They affirmed the ISB Honour Code and began answering questions. For the first question, they described the positive linear relationship between store size and monthly sales. Their next responses interpreted the regression results, proposed a hypothesis test to verify the relationship, and provided predictions for monthly sales based on the regression equation. They concluded by analyzing the correlations between the variables.

    Original Description:

    MARKETING MANAGEMENT

    Original Title

    SOREN CHIMAL CASE

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    Ronit Agarwal submitted their assignment for the course Statistical Methods for Management Decisions. They affirmed the ISB Honour Code and began answering questions. For the first question, they described the positive linear relationship between store size and monthly sales. Their next responses interpreted the regression results, proposed a hypothesis test to verify the relationship, and provided predictions for monthly sales based on the regression equation. They concluded by analyzing the correlations between the variables.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    20 views5 pages

    Soren Chimal Case

    Uploaded by

    Amit Mishra
    Ronit Agarwal submitted their assignment for the course Statistical Methods for Management Decisions. They affirmed the ISB Honour Code and began answering questions. For the first question, they described the positive linear relationship between store size and monthly sales. Their next responses interpreted the regression results, proposed a hypothesis test to verify the relationship, and provided predictions for monthly sales based on the regression equation. They concluded by analyzing the correlations between the variables.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 5

     

       
      
    ASSIGNMENT SUBMISSION FORM  
      
       
    Course Name: Statistical Methods for Management Decisions
    Assignment Title: Assignment 3 (CCD) 
    Submitted by: Individual, Section C 
      
    Student Name   PG ID  
    Ronit Agarwal 62210384
     
    ISB Honour Code   

     I will represent myself in a truthful manner.


     I will not fabricate or plagiarize any information regarding the curriculum.
     I will not seek, receive, or obtain an unfair advantage over other students.
     I will not be party to any violation of the ISB Honour Code.
     I will personally uphold and abide, in theory and practice, the values, purpose and
    rules of the ISB Honour Code.
     I will report all violations of the ISB Honour Code by members of the ISB
    community.
     I will respect the rights and property of all in the ISB community.
     I will abide by all the rules and regulations that are prescribed by ISB.

    (Please start writing your assignment below)  

    1
    Q1.

    Form: The association between store size and


    monthly sales can be described with a linear
    equation.

    Direction: Positive value of corelation ‘r’


    indicates a positive association/direction.

    Strength: Does the association appear to be


    strong, moderately strong, or weak? A high
    enough value of ‘r’ indicates that there is a
    strong relationship between the store size
    and the monthly sales.

    2
    Q2.

    Interpretation:

    1. The R2 value is 0.65 which means the model explains about 65% of the variation in our
    dependent variable.
    2. There is a strong correlation, which does not necessarily mean that there is causation of
    one factor because of the other but there is a relation (positive) between the two.
    However, because the size of the store intuitively causes greater brand image and
    footfall, the bigger size of the store most probably is the cause of higher monthly sales.
    3. The root mean square error is low which means that the error is not significant in
    reference to our fit line. Also, the data is normally distributed.
    4. The p-value of the data is low, which means that we can safely reject our null
    hypothesis (there is no causality between the two variables).
    5. Covariance is very high which means that the variables are very strongly correlated

    Q3.

    We can do a hypothesis test to verify our claim. Null


    Hypothesis: Ho = the sales are not based on store
    size.

    Test: p value way less than alpha even at ~99%


    confidence so it is safe to assume that the
    monthly sales are based on store size.

    Q4.

    The retail industry wisdom of Rs 500 per month per sq. ft is not applicable to CCD because even
    upper 95% of the confidence interval is 498.64 which is less than 500.

    Q5.

    Predicted Monthly sales (INR) = 32249.334 + 311.0897*Store Size (in Sq. Ft.)

    For Store size = 200 sq. ft: Monthly sales (INR) = 32249.334 + 311.0897*200 = 94467.274

    3
    Similarly, for: 500 sq. ft: Monthly sales (INR) = 32249.334 + 311.0897*500 = 187794.184

    Q6.

    1. The corelation value between


    the store size and monthly sales
    is 0.8101 which indicates a
    strong relationship between
    the two variables.

    2. The corelation value between


    the monthly sales and predicted
    monthly salary is 0.8101 which
    is not surprising because the
    predicated monthly salary is
    the outcome of the fit line.

    3. There is a weak correlation


    between monthly sales and
    residuals monthly sales.

    4
    5

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