Assume you have asked your data folks to determine the relationship between customer service scores (i.e. the ratings provided by customers in response to a survey) and profit. The analyst reports the following: "I gathered data for the last 48 months and ran a regression where profit in a given month is the dependent variable and customer service score in that same month is the independent variable. I found an intercept of $10,000 (p-value: 0.31) and the coefficient on customer service score is $1,200 (p-value: 0.22). The R-2 (which is appropriate when there is just one independent variable) is 0.07." What do you infer from the results (two to three sentences, sticking to the information provided) and why?
Assume you have asked your data folks to determine the relationship between customer service scores (i.e. the ratings provided by customers in response to a survey) and profit. The analyst reports the following: "I gathered data for the last 48 months and ran a regression where profit in a given month is the dependent variable and customer service score in that same month is the independent variable. I found an intercept of $10,000 (p-value: 0.31) and the coefficient on customer service score is $1,200 (p-value: 0.22). The R-2 (which is appropriate when there is just one independent variable) is 0.07." What do you infer from the results (two to three sentences, sticking to the information provided) and why?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Assume you have asked your data folks to determine the relationship between customer service scores (i.e. the ratings provided by customers in response to a survey) and profit. The analyst reports the following:
"I gathered data for the last 48 months and ran a regression where profit in a given month is the dependent variable and customer service score in that same month is the independent variable. I found an intercept of $10,000 (p-value: 0.31) and the coefficient on customer service score is $1,200 (p-value: 0.22). The R-2 (which is appropriate when there is just one independent variable) is 0.07."
What do you infer from the results (two to three sentences, sticking to the information provided) and why?
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