Paper needed, statistics homework help
Paper needed, statistics homework help
A finance manager employed by an automobile dealership believes that the number of cars sold in his local market can be predicted by the interest rate charged for a loan.
| Interest Rate (%) | Number of Cars Sold (100s) |
| 3 | 10 |
| 5 | 7 |
| 6 | 5 |
| 8 | 2 |
The finance manager performed a regression analysis of the number of cars sold and interest rates using the sample of data above. Shown below is a portion of the regression output.
| Regression Statistics | |
| Multiple R | 0.998868 |
| R2 | 0.997738 |
| Coefficient | |
| Intercept | 14.88462 |
| Interest Rate | -1.61538 |
- Are there factors other than interest rate charged for a loan that the finance manager should consider in predicting future car sales?
- Is interest rate charged for a loan the most important factor to be considered in predicting future car sales? Explain your reasoning.The dealership’s vice-president of marketing has requested a sales forecast at the prevailing interest rate of 7%.
- As finance manager, what reasons would you convey to the vice-president in recommending this forecasting model?
- Is the prediction of car sales at 7% a reflection of the current downturn in the economy? How might this impact the dealership’s business?
Knowledge of statistics is important foundational knowledge for analyzing data. Equally important is what you can do with that information. An overarching goal of this course is to consider how statistics informs decision making, or data-based decision making. Throughout this course, you will be asked to make decisions and then to consider the impact of those choices. Whether in stock trading, in car sales, or on the production floor, the decisions you make as a business professional should be directly influenced by the data available to you. Careful analysis is the key to data-based decision making. Each module task below provides a scenario and a list of questions for you to answer using data-based decision making. Guidelines for Submission: Your analysis of the scenario must be submitted as a 1- to 2-page Microsoft Word document with double spacing and 12-point Times New Roman font.
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