Multivariate analysis
Using the data provided, perform the following analysis:
- Determine the explanatory and response variables.
- Run a multivariate regression analysis on all threevariables.
Interpret the results by answering the following questions:
- What is the calculated correlation coefficient? Do the salesfigures correlate with the marketing expenditure and price?
- Comment on the coefficient of determination. What percentage ofthe response data can be explained by the explanatoryvariables?
- Determine the multiple regression line equation in theform:
sales^ = (intercept) +(coefficient)× marketing + (coefficient)×price
- Using the regression equation formulated, what is the amount ofexpected sales (in pounds), if the price is set at £3.50 and theamount spent on marketing is £300?
- Interpret the variables in the regression equation. What impactdoes each of the factors (marketing and price) have on the salesfigures?
| Total sales | Marketing | Price |
| £ 1,500.00 | £ 330.00 | £ 3.50 |
| £ 1,354.00 | £ 270.00 | £ 3.75 |
| £ 1,489.00 | £ 320.00 | £ 3.50 |
| £ 1,347.00 | £ 280.00 | £ 3.90 |
| £ 1,321.00 | £ 260.00 | £ 4.00 |
| £ 1,245.00 | £ 240.00 | £ 4.20 |
| £ 1,589.00 | £ 325.00 | £ 3.50 |
| £ 1,632.00 | £ 340.00 | £ 3.30 |
| £ 1,485.00 | £ 320.00 | £ 3.40 |
| £ 1,420.00 | £ 300.00 | £ 3.70 |
