Apply: Week 5 Case

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You are the manager of a retail store. You want to investigate how metrics can improve the way you manage your business.

Use the Week 5 Data Set and Excel® to create a worksheet for each numbered bullet, include all calculations, and label and/or highlight your answers for the following:

  1. Conduct a goodness of fit analysis which assesses orders of a specific item by size and items you received by size.
    • Conduct a hypothesis test with the objective of determining if there is a difference between what you ordered and what you received at the .05 level of significance.
    • Identify the null and alternative hypotheses.
  2. Generate a scatter plot, the correlation coefficient, and the linear equation that evaluates whether a relationship exists between the number of times a customer visited the store in the past 6 months and the total amount of money the customer spent.
    • Set up a hypothesis test to evaluate the strength of the relationship between the two variables.
    • Use a level of significance of .05.
  3. Use the regression line formula to forecast how much a customer might spend on merchandise if that customer visited the store 13 times in a 6 month period. Consider the average monthly sales of 2014, $1310, as your base to:
    • Calculate indices for each month for the next two years.
    • Graph a time series plot.
  4. In the Data Analysis Toolpak, use Excel’s Exponential Smoothing option.
    • Apply a damping factor of .5, to your monthly sales data.
    • Create a new time series graph that compares the original and the revised monthly sales data.

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