Question 4: Water Bottle

The file water bottle.xlsx gives the monthly sales of water bottles at different prices and the number of advertisements in each month.

For example, when the selling price was $8 and only one advertisement was used, the sales of the water bottle were 22845 units.

The regional manager wants to analyze the relationship between sales, price, and the number of advertisements.

1. Please build three models to predict sales. Please interpret the results of each model, including R-squared, p-value of coefficients, and coefficients.

a. Model 1: Price and sales.

b. Model 2: Number of advertisements and sales.

c. Model 3: Price, number of advertisements, and sales.

2. Which model has a stronger predictive power than the others?

Instruction:

You need to run correlation analysis for question 4

Water Bottle

• In this question, you need to figure out which one of the three regression models has a stronger predictive power. How? Compare the R-squared of the models.

• The model with the highest R-squared has the strongest predictive power.