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Data Analysis for Modeling

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Five years ago, an automobile manufacturer stated offering an extended warranty to buyers of its sport-utility vehicle. The extended warranty covered defects occurring after the initial three-year warranty expired. Of the 10,000 people who bought the sport-utility in the first year of the program,15 percent purchased the extended warranty. In the Warranty Department, you have recently received data on a random sample of 200 of the cards sold in the first year that the extended warranty was available. For this sample, the average extended warranty expenditure per car for the one-year period after the initial warranty elapsed was $350, with a standard deviation of $100.

a. What is a 95 percent confidence interval for the mean one-year extended-warranty expenditure per automobile?

b. At its introduction, the extended warranty was priced at$445per year per automobile. Compute a95 percent confidence interval for the one-year profitability of the extended warranty.

c. How large a same would the Warranty Department require if it wanted its95 percent confidence interval for the mean warranty expenditure to be no more than + $5?

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Statistics rely on probability. Whenever you're given a mean of a sample, you don't really know if the true mean for the whole population is higher or lower than that sample mean. The confidence interval is a statistical calculation we can make to determine how likely it is that the true mean lies between two values, one above and one below the sample mean. Given a sample mean of 350, a sample size of ...

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TEST #1: Regression Analysis- Benefits & Intrinsic

Perform the following Regression Analysis, using a .05 significance level

ââ?¬¢Run a regression analysis using the BENEFITS column of all data points in the AIU data set as the independent variable and the INTRINSIC job satisfaction column of all data points in the AIU data set as the dependent variable.
ââ?"¦Copy and paste the results of the output to your report in Microsoft Word.
ââ?¬¢Create a graph with the trendline displayed the 3 regression.
ââ?"¦Copy and paste the results of the output to your report in Microsoft Word.

TEST #2: Regression Analysis- Benefits & Extrinsic

Perform the following Regression Analysis, using a .05 significance level

ââ?¬¢Run a regression analysis using the BENEFITS column of all data points in the AIU data set as the independent variable and the EXTRINSIC job satisfaction column of all data points in the AIU data set as the dependent variable.
ââ?"¦Copy and paste the results of the output to your report in Microsoft Word.
ââ?¬¢Create a graph with the trendline displayed for the regression.
ââ?"¦Copy and paste the results of the output to your report in Microsoft Word.
TEST #3: Regression Analysis- Benefits & Overall Job Satisfaction

Perform the following Regression Analysis, using a .05 significance level

ââ?¬¢Run a regression analysis using the BENEFITS column of all data points in the AIU data set as the independent variable and the OVERALL job satisfaction column of all data points in the AIU data set as the dependent variable.
ââ?"¦Copy and paste the results of the output to your report in Microsoft Word.
ââ?¬¢Create a graph with the trendline displayed for the regression.
ââ?"¦Copy and paste the results of the output to your report in Microsoft Word.
Overview of the Regressions

Complete the table with the following information:

Dependent Variable Slope Y-intercept

Equation

Intrinsic

Extrinsic

Overall

ââ?¬¢State the slope and the y-intercept for the three regressions.
ââ?¬¢State the least squares regression line equations for the threes regressions.
ââ?¬¢State the R-squared value for each of the regressions.
Analysis of the Regressions

Make very specific comments and give reasons regarding any similarities or differences in the output results.

Which regression produces the strongest correlation coefficient result? Why? What does it mean to a manager?

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