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EA Linear Regression

The SPSS output shows there is a strong positive correlation (0.951) between annual promotional expenditures and annual sales, indicating a direct relationship. A linear regression model was fitted, with annual sales predicted to be 55.246 + 2.574 * expenditure. This model explains 90.5% of the variation in annual sales. Using this model, annual sales are predicted to be P10,296,055.246 if promotional expenditures are P4,000,000.

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Josh Ramos
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98 views3 pages

EA Linear Regression

The SPSS output shows there is a strong positive correlation (0.951) between annual promotional expenditures and annual sales, indicating a direct relationship. A linear regression model was fitted, with annual sales predicted to be 55.246 + 2.574 * expenditure. This model explains 90.5% of the variation in annual sales. Using this model, annual sales are predicted to be P10,296,055.246 if promotional expenditures are P4,000,000.

Uploaded by

Josh Ramos
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

De La Salle University – Dasmariñas

COLLEGE OF SCIENCE AND COMPUTER STUDIES


MATHEMATICS AND STATISTICS DEPARTMENT
City of Dasmariñas, Cavite

ENABLING ASSESSMENT
SIMPLE LINEAR REGRESSION AND CORRELATION
Score:
NAME: Josh Jacob R. Ramos DATE: _________________

COURSE/YEAR & SECTION: CEE14 PROF.: _________________

Direction: Make a short report on the SPSS outputs given on each problem. 15 points each
1. An agent of large car manufacturer wants to determine whether there is a relationship between an
individual's income and the price they pay for a car. As such, the individual's "income" is the
independent variable and the "price" they pay for a car is the dependent variable. The agent wants
to use this information to determine which cars to offer potential customers in new areas where
average income is known.
Summarized SPSS output:

2. The ABC Foods Inc. believes that its sales are directly related to the amount od money it
spends on promotion. The company has accumulated the following data on promotional
expenditures and sales for the past 10 years. (note: annual promotional expenditure and
annual sales in P100,000)

Annual 8 14 10 13 15 18 19 20 24 29
Promotional
Expenditure

Annual 65 90 84 95 97 100 105 111 120 123


Sales

The manager of the corporation wants to determine the following:


a. The degree of relationship between promotional expenditures and sales
The two variable has a strong positive correlation because the Pearson result between annual
promotional and expenditure and annual sale is 0.951.
b. if the annual sales can really be predicted by the annual promotional expenditure.

The linear regression equation is:


y = a + bx
Sale = 55.246 + 2.574(expenditure)

Additionally, the annual sales have 90.5% of variation because the r2 is .905.

c. He also wants to determine the annual sales if he will input P4,000,000 for promotional
purposes.
Sale = 55.246 + 2.574(expenditure)
Sale = 55.246 + 2.574(4,000,000)
Sale = 10,296,055.246

SPSS OUTPUT:

Correlations

Correlations
expenditure sales
expenditure Pearson Correlation 1 .951**
Sig. (2-tailed) .000
N 10 10
sales Pearson Correlation .951** 1
Sig. (2-tailed) .000
N 10 10
**. Correlation is significant at the 0.01 level (2-tailed).

Regression

Model Summary
Adjusted R Std. Error of the
Model R R Square Square Estimate
1 .951a .905 .893 5.65142
a. Predictors: (Constant), expenditure

ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 2424.492 1 2424.492 75.911 .000b
Residual 255.508 8 31.939
Total 2680.000 9
a. Dependent Variable: sales
b. Predictors: (Constant), expenditure

Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 55.246 5.330 10.364 .000
expenditure 2.574 .295 .951 8.713 .000
a. Dependent Variable: sales

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