Regression and Statistical Effects Assignment Example | Topics and Well Written Essays - 1250 words

Regression and Statistical Effects - Assignment Example The data is divided into two groups. The total data set is divided into 4 segments: low lifetime, low revenue; low lifetime high revenue; high lifetime, low revenue, and high lifetime, high revenue. The first step ion the analysis is the calculation of bivariate Pearson’s correlation coefficient between lifetime and profit. The author graphically analyses the trends between profitability and lifetime of the customer. Then, a linear regression model is developed to describe the relation for the four segments. The author then suggests a method using discriminant analysis that helps managers find out the most profitable customers. The research finds that it is not necessary that long-life customers are more profitable than short-life customers. The author also concludes that long-life customer do not necessarily pay more, and have higher costs. Regression analysis has been used in the study to the relation between the profitability of the customer and time. The researcher regress the profitability of the 4 segments with respect to time using the equation The relation between the profitability and time can be ascertained by the sign of the regression coefficient. A positive coefficient indicates a positive relation between the profitability and time for the particular segment. The researcher also makes use of a dummy variable to reflect the effects of a large first month purchase because purchase amount for the first month is generally found to be higher than succeeding months. Besides this, the researcher also attempts to draw broad conclusions regarding the direction of relation between the profits and time by using Pearson’s correlation coefficient, and charts depicting the behaviors of the 2 groups. The small correlation coefficient (0.175 for Cohort 1 and 0.219 for Cohort 2) indicates a moderate linear relation between the lifetime duration and lifetime profits. Besides this, the researcher draws the graphs with lifetime

Budget Proposal Assignment Example | Topics and Well Written Essays - 1000 words

Budget Proposal - Assignment Example Though the economy has witnessed decrease in unemployment, there is still a large proportion who has failed to find full time jobs. Corporate profits have risen dramatically, but the wage rate and income level has failed to witness the same growth. It should focus more on adding value to the rising middle class and create a hub for jobs. It should work for many and not for few. US should try to attract more high tech jobs for its middle class. A growing middle class is a key indicator of a growing economy. Bringing jobs will not solve the problem, but its people should be educated, trained and better equipped to meet the requirement of the jobs. This will not only improve the per capita income of US, but will also create high revenue for the government through large base of tax payers (Mankiw, 2008). They key areas that should be the main focus towards a balanced budget would include sectors like, infrastructure and development, education, clean energy, small business, manufacturing, health and defense. These are the critical areas of government expenditure that are to be increased while the other sectors should be decreased. The other sectors include justice, transportation, SSA, Science foundation, treasury, interior, veteran affairs, agriculture, etc. From the revenue the budgeted tax collection should be increased. The sources include income tax, corporate tax, social security tax, excise and customs. Estate and gift tax to be reduced. The specific target areas include the sectors that will help augment the revenue for the government and significantly reduce the budget deficit. Though it is totally not possible to eliminate the deficit in the short run, but it can be reduced to a sustainable level. All the sectors are critical to the growth of the economy, yet there are cert ain sectors as mentioned above that needs government aid to complement the vision of developing the middle class and creating jobs. Health and