Date: October 11, 2012
To: Bob Barnetson
From: Jane Smith
Subject: Regression Analysis
I completed a regression analysis to indicate how many customer service representatives we are going to need to fulfill our increasing demand for dating contracts. Based on my findings I was able to determine this:
I set up a chart to find the independent (x) and dependent (y) variable. I used these variables to find XY and X2. Once I had all my numbers I plugged them into a slope formula and found how many individuals are needed for every 1000 dating contracts. For every thousand dating contracts seven additional staff members are needed.
Slope of B= 312.9-278.4 = 34.5/5.25=6.57= 7
By finding the slope I as able to apply it to a simple Y= A+BX formula and determine how much is needed for 5000 and 7000 dating contracts. When I plugged in the numbers I found that for 5000 dating contracts 33 customer service representatives are needed and for every 7000 dating contracts 46 customer service representatives are needed. All these findings are able to tell us how many customer service representatives need to be hired every time contracts increase.
For 5000 dating contacts: X=5 For 7000 dating contacts: X=7
Y= 0.147+ 6.57(7) Y= 0.147+6.57(5)
Y= 46.14 Y= 33.00
For more detailed calculations please refer to Appendix.
Appendix and References
Forecast the number of customer service representatives required for 5000 and 7000 dating contacts.
X Y XY ...