Explore BrainMass

Incremental gain

XYZ telemarketing company uses an outbound dialer to contact potential sales customers. Each day they have a different file size or potential customers and a different number of employees working. The dial through number represents the number of attempts made to call each guest (Dials/Number of Files). The conversion rate represents the percentage of potential customers who agreed to buy their product (Customers who buy/Number of Files). XYZ makes the assumption that more attempts to call each potential guest results in the more sales. Determine if their assumption correct? If XYZ could hire more employees to make additional calling attempts which day of the week offers the best incremental gain in conversion rate?


Solution Preview

Please see the attached Excel sheet.

(1) In order to assess the validity of XYZ's assumption, a scatter plot is generated for dial through vs. sales over the entire data set. Notice that the word "sales" in the question probably means "the number of customers who agree to buy products", not the dollar amount of business transaction (normal business use). Therefore, sales = dial through * conversion rate.

Looking at the scatter plot, notice that
(i) the R^2 for the ...

Solution Summary

This provides an example of working with data to determine if an assumption is correct.