Take-Home Problem
You have noticed that sales of your security systems in the present month seem to be related to the number of break-ins reported the previous month, as shown below:
| Break-ins repoerted in previous month |
Sales in Present Month |
| 15 |
74 |
| 25 |
80 |
| 40 |
84 |
| 32 |
81 |
| 51 |
96 |
| 47 |
95 |
| 30 |
83 |
| 18 |
78 |
| 14 |
70 |
| 15 |
72 |
| 22 |
85 |
| 24 |
88 |
| 33 |
90 |
a. What are the dependent and independent variables?
b. Run a regression analysis on the data above using Excel, as done in class. Include a copy of your printout.
c. Does the regression model seem to fit the data very well? What evidence do you have for this? Explain. What could be done that might improve the accuracy of your model?
d. Prepare a prediction equation to predict the number of sales for the present month based on the number of break-ins reported in the previous month.
e. Assume that the present month has 43 break-ins reported. Use the prediction equation to predict next month's sales.