Phase 4 - Task 1
Primary Discussion Response is due by Wednesday
WidgeCorp is considering branching out into cold beverages. You have been asked to come up with a regression model to forecast monthly sales of cold beverages for the next year. Think about what variables you might include in your model (you do not need to run a regression and therefore you will not need actual numbers. You just need to identify and justify your selection of variables that you would include in your model).
Your manager asks for your thoughts. Respond to anybody who asks you to explain your variable selection (as per the previous question).
Phase 4 - Task 2
You're in a brainstorming session at WidgeCorp, where no idea is too outrageous. You're discussing penetration in the school lunch market. Ideas around school lunch subsidies, Internet subsidies, and Internet target marketing are being discussed. As the end of the meeting, the group asks you to prove or disprove some assumptions by looking at correlations.
First, acquaint yourself with the Internet subsidy issue by reading the article Closing the Digital Divide: Internet Subsidies in Public Schools by Austan D. Goolsbee and Jonathan Guryan at http://www.chicagobooth.edu/capideas/summer03/digitaldivide.html
Next, look at the Variable comparison chart attached in this email:
Based on the findings as reported in this article, prepare a chart similar to the one in the downloaded file to indicate if the correlation between Variables A and B were found to be positive, negative, or minimal.
In your own words, explain what it means if the correlation of 2 variables is positive, negative, or minimal (close to 0) and give an example of each.
Please submit your assignment.