Using the Email marketing (EMMA) dataset (attached), build a simple regression model that predicts “Total customer value” (Y) from “Tenure” (X). . .
Use the Excel capabilities for Simple Regression (hint: data -> scatterplot -> fit trendline)
Use the algebraic approach to come up with the simple regression equation. You will need the following components to determine the slope ‘b’ and intercept ‘a’ values of the equation:
Correlation, r (you can use Excel’s CORR( ) function to calculate this),
Standard deviations for X and Y (use population standard deviations, stdev.p( ),
Means for X and Y,
Note: that answers to ‘1’ and ‘2’ above should all match if calculated correctly.
3. What is the predicted Value for a customer with a Tenure of ’12’ terms? And what is value for a customer with a Tenure of ’30’ Terms?
4. What would you conclude about the relationship and ability to predict Value from Tenure? Is it a strong relationship or not (i.e. what is the basis for your conclusion, and how much variation is explained or not explained?)
Requirements: just finish with requirement