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Schwan’s Consumer Brands to assess their customer data on Mrs. Smyth’s frozen pies.

You have been hired by Schwan’s Consumer Brands to assess their customer data on Mrs. Smyth’s frozen pies.  A sample of 48 data points has been collected from six locations over a two-year period.  Data includes quarterly sales (in units), price (in $), advertising (in $ thousands), competitor prices (in $), average income (in $ thousands), population size (in millions), and the time (quarter) the sample was collected. Download the “pie data.xls” file from the Week 4 folder to complete your analysis.


1.Assess whether the data set can be evaluated with regression or if any assumptions have been violated:
a.Identify if the data set is normal by plotting the residuals.  Show your graph and describe the results.
b.Is there equal variance?
c.Describe if the data is linear and why.
d.Are the error values statistically independent (the scores of any particular
subject are independent of the scores of all other subjects)?

2.Display the applicable correlation coefficients and describe what they mean.

3.Run a simple linear regression on the dependent variable and the impact of each metric independent variable individually.
a.Create a table with the values for adjusted r2, test statistic, p-value, and beta weights for each independent variable.
b.Which independent variable has the most impact on the dependent variable and how do you know?

4.Run a multiple regression that includes all metric independent variables.
a.Write your hypotheses, significance level, sample size, adjusted r2, test statistic, p value, decision, and reasoning.
b.Display the results of your analysis.
c.Write the Ŷ formula.
d.Predict the dependent variable outcome with quarterly sales of 24000, price of 5.50, advertising of 7.0, competitor price of 4.00, income of 40.5, and population of 1600. [Note: one of these values is the dependent variable and therefore cannot be plugged into the formula as it is the predicted Y value you are trying to solve for.]
e.Finally, use simple linear regression analysis to determine if the nonmetric variable has a significant impact on the dependent variable.  Show the output and explain the answer.

5.Summarize your findings and provide a suggestion on how Schwan’s Consumer Brands can act on this data.

Write-up Instructions:

Submit a PDF showing your analysis and writen explanations.  You may use SPSS, Microsoft Excel, or a combination of both.

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