“Multiple Regression”

The data set belong to the GoodBelly company and it has 1387 observations. Each group must pick minimum 100 to maximum 200 RANDOM observations from this data set. Make sure you pick observations as unique as it is possible that it does not resemble any other group’s. I need an at least 6 page report and in your report you must clearly mention the range of observations you have selected and if I see two groups with same set of observations, I’ll return both projects to the group representative and they must do it again.

GoodBelly is trying to boost its sales at grocery stores like Whole Foods Market. As a small start-up, it must optimize the allocation of its limited marketing budget. It currently promotes through in-person demonstrations in stores, but management is concerned that these demonstrations are not effective enough to justify the cost. It is up to GoodBelly’s student intern, you, to evaluate its promotional programs using statistical evidence. You will need to apply regression analysis to sales data to determine whether or not the company should continue its promotional programs. In particular, you must:

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Build and select a multiple regression model (see “Multiple Regression” file on Blackboard).

Use dummy variables (see “Multiple Categorical Variables” file on Blackboard).

Interpret statistical output to generate managerial recommendations. Make sure you interpret all the coefficients and the r-squared.

Write down the hypotheses for the coefficient significance tests and report the result of the tests. You can use any of the three methods discussed in class (see “Statistical Tests-3 Methods” file on Blackboard).

Evaluate and choose alternative statistical models. This means that if you have started with a model with several predictor/regressor/independent variable and one of the coefficients turns out to be statistically insignificant, omit that variable and run your regressions again with remaining variables until you have a meaningful model that describes GoodBelly’s sales.

NOTE: You must email me the report as a PDF file plus an excel file

which contains your selected RANDOM observation set before the deadline (I will set the deadline later). Don’t forget to attach the receipts of your purchase in your

email or your report.

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