Correlation, regression and scatter plots


Decision Problem/ Research Question: Is there a relationship between an AFC member’s age, what they think is important in terms of going to the center and the total fees that he or she pays at the center?  Managers think so and if it is so they plan to pay more attention to older customers and create more opportunities to align to what members think is important.  Who knows—a wine and cheese party to facilitate socializing!  Is there evidence that might be a good idea?

H0:  No relationship between revenue and member age including importance ratings.
HA:  There is a relationship between revenue and member age including importance ratings

Research Question: Is there a relationship between purchases and minutes spent on the website?

Correlation Analysis—There is a strong positive correlation between store purchases
and minutes on the e-commerce sites.  As the amount of time on the site goes up
the number of purchases increases .

H0:  There is no relationship between time spent on e-commerce sites and purchases on the sites.
HA:   There is a relationship between time spent on e-commerce sites and purchases on the sites.

Part 2: 
In a pretest, data on Nike were obtained from 45 respondents. These data are given in the SPSS file on the course site, which gives the usage, sex, awareness, attitude, preference, intention, and loyalty toward Nike of a sample of Nike users. Usage has been coded as 1, 2, or 3, representing light, medium, or heavy users. The sex has been coded as 1 for females and 2 for males. Awareness, attitude, preference, intention, and loyalty are measured on 7-point Likert-type scales (1 = very unfavorable, 7 = very favorable). Note that five respondents have missing values that are denoted by 9.

The Nike SPSS data file is posted—nike.sav

Using the appropriate hypothesis test utilizing SPSS for the statistical procedure, answer the research questions.  1st state the null hypothesis and the alternative.  Calculate the appropriate statistic.  State whether you can reject or accept the null hypothesis and why.  Interpret the result.

Research Questions

1. Is there a difference  a relationship between purchase intention for Nike and awareness, attitude, preference, and for  Nike among a sample of Nike users?  State the H0 and HA.  Can H0 be accepted or rejected.

2. We can use the regression analysis to determine how much of the variability in purchase intent (the dependent variable) can be explained by the independent variables (Nike ratings).  What does the regression model indicate, which independent variables (if any) have influence on purchase intent?  Is multicollinearity an issue?

3.  Visualize the regression models with a scatter plot.

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