Goodness fit analysis

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

Using the Week 5 Data Set, create and calculate the following in Excel®:

  1. Conduct a goodness of fit analysis which assesses orders of a specific item and items you received by size, and do the following:
    • 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 evaluating 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, and do the following:
    • 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.
  4. Use the average monthly sales of 2014 ($1,310) as your base to do the following:
    • Calculate indices for each month for the next two years.
    • Graph a time series plot.