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brand name chatkhara pickel for over the last two decades. National Foods is engaged in the manufacturing and marketing of high quality Pakistani processed foods such as pickles, spice pastes, instant mixes, etc. Of late, the management of national Foods started facing three problems. 1. What are the average sales of pickles only? 2. To identify the factors that can increase the sales of pickles? 3. We want to estimate d probability of preference of product for future? To find out a solution, national foods sought the help of a marketing department which consulted the marketing agency. The Marketing agency started its research task to find out the average sales of pickles and what factors influencing the sales of pickle. To solve the problem, the company applied Multiple Regression Analysis technique to find out the factors. After processing the surveyed data, Care agency was able to provide solution to the problems of national Foods. 1. What are the average sales of pickles only? Sol: As the company is making a lot of products so to solve the problem related to pickles they first need to find out the average sales they generate from pickles.
Descriptive Statistics N sales Valid N (listwise) 15 15 Minimum 8000.00 Maximum 8700.00 Mean 8346.6667 Std. Deviation 272.20440
Statistics sales N Valid Missing Mean Std. Error of Mean Median Mode Std. Deviation Variance Range Minimum Maximum 15.00 .00 8346.67 70.28 8300.00 8300.00a 272.20 74095.24 700.00 8000.00 8700.00
sales Cumulative Frequency Valid 8000 8100 8300 8500 8700 Total 3 2 4 2 4 15 Percent 20.0 13.3 26.7 13.3 26.7 100.0 Valid Percent 20.0 13.3 26.7 13.3 26.7 100.0 Percent 20.0 33.3 60.0 73.3 100.0
According to the survey that care advertisement agency did through a street show they find out that there are two factors which affect the increase the sales i.e. the quality and price, if they keep a reasonable price and high quality their sales will increase.
Variables Entered/Removedb Variables Model 1 Entered qualitya Variables Removed Method . Enter
Model Summary Adjusted R Model 1 R .352a R Square .124 Square .056 Std. Error of the Estimate 264.41356
ANOVAb Model 1 Regression Residual Total Sum of Squares 128444.444 908888.889 1037333.333 df 1 13 14 Mean Square 128444.444 69914.530 F 1.837 Sig. .198a
Coefficientsa Standardized Unstandardized Coefficients Model 1 (Constant) quality a. Dependent Variable: sales B 8233.333 188.889 Std. Error 107.946 139.358 .352 Coefficients Beta t 76.272 1.355 Sig. .000 .198
The first variable is quality according to the table it shows that Quality is differentiated by assigning codes 0 represents low quality and 1 represents high quality. y = 0 + 1 D + error
= 8233.333 + 188.889 D
Regardless of quality the average sales of pickle will b 8233.3 but if we increase the quality from low to high the average sales will increase by 188.889. r square is 0.12 which means only 0.88 is the contribution of quality in sales and 0.12 is contributed by external factors. If we assign codes e.g.: Y= 0 + 1 (0) + error
Variables Entered/Removedb Variables Model 1 Entered pricea Variables Removed Method . Enter
Model Summary Adjusted R Model 1 R .787a R Square .620 Square .590 Std. Error of the Estimate 174.23040
ANOVAb Model 1 Regression Residual Total Sum of Squares 642702.331 394631.002 1037333.333 df 1 13 14 Mean Square 642702.331 30356.231 F 21.172 Sig. .000a
Coefficientsa Standardized Unstandardized Coefficients Model 1 (Constant) price a. Dependent Variable: sales B 6646.632 39.413 Std. Error 372.197 8.566 .787 Coefficients Beta t 17.858 4.601 Sig. .000 .000
The second variable is price according to the table it shows that: Y= 0 + 1 x + error
= 6646.632 + 39.413 x
it shows that regardless of price the average sales of pickles would be 6646.632 but if we increase the price from one rupee the average sales will increase by 39.413. r square is 0.6 which means that only 0.4 is the contribution is because of price rest 0.6 is because of uncontrollable factors. Y= 0 + 1 x + error
Variables Entered/Removedb Variables Model 1 Entered quality, pricea Variables Removed Method . Enter
Model Summary Adjusted R Model 1 R .892a R Square .795 Square .761 Std. Error of the Estimate 133.18903
ANOVAb Model 1 Regression Residual Total Sum of Squares 824461.511 212871.823 1037333.333 df 2 12 14 Mean Square 412230.755 17739.319 F 23.238 Sig. .000a
ANOVAb Model 1 Regression Residual Total Sum of Squares 824461.511 212871.823 1037333.333 df 2 12 14 Mean Square 412230.755 17739.319 F 23.238 Sig. .000a
Coefficientsa Standardized Unstandardized Coefficients Model 1 (Constant) price quality a. Dependent Variable: sales B 6436.128 41.157 225.473 Std. Error 292.024 6.571 70.439 .822 .420 Coefficients Beta t 22.040 6.264 3.201 Sig. .000 .000 .008
Y= 0 + 1 x + 2 D + error = 6436.1 + 41.1 x + 225.4 D Regardless of price and quality the average sales will be 6436.1 If we increase the price by one rupee average sales will be increased by 41.1 and if we move from low quality to high quality the average sales will be increased by 225.4