Business outcomes using predictive analysis techniques.

Full Answer Section

 

• x4: Average price of gasoline per gallon. A 1-cent increase in the average price of gasoline is associated with a decrease in weekly sales of 71 units.

2. What are the estimated weekly sales if the unemployment rate is 3.7%, the average high temperature is 670, there are 10 activities, and the average price of gasoline is $3.39 per gallon?

Plugging these values into the equation, we get: Y = 22,100 - 412(3.7) + 818(67) - 93(10) - 71(3.39) = 17,215 units Therefore, the estimated weekly sales are 17,215 units.

3. Evaluate data mining techniques that could be used to enhance manager's decision-making to increase sales.

There are a number of data mining techniques that could be used to enhance the manager's decision-making to increase sales. These include:

• Customer segmentation: This involves grouping customers together based on their shared characteristics, such as age, income, and interests. This can help the manager to target marketing campaigns more effectively.
• Predictive analytics: This involves using historical data to predict future trends. This can help the manager to identify opportunities to increase sales, such as new products or services that are likely to be popular.
• Text mining: This involves analyzing text data, such as customer reviews, to identify trends and patterns. This can help the manager to understand what customers are looking for and how they feel about the company's products and services.

4. What recommendations or decisions could you make based on the results of your analysis?

Based on the results of my analysis, I would make the following recommendations or decisions:

• Increase marketing efforts in areas with high unemployment rates. This is because the estimated weekly sales are lower in areas with high unemployment rates.
• Promote the company's products and services during hot weather. This is because the estimated weekly sales are higher during hot weather.
• Offer discounts on products and services during periods of high gasoline prices. This is because the estimated weekly sales are lower during periods of high gasoline prices.

Continue to monitor the data and make adjustments to marketing and sales strategies as needed. This is because the data mining techniques can be used to identify new trends and patterns that can help to increase sales.

Sample Solution

  Based on the equation above, please provide the value for x1, x2, x3, and x4. Also, explain what these values mean in the context of this question.

• x1: Local unemployment rate. A 1% increase in the unemployment rate is associated with a decrease in weekly sales of 412 units.
• x2: Weekly average high temperature. A 1 degree increase in the average high temperature is associated with an increase in weekly sales of 818 units.
• x3: Number of activities in the local community. A 1-unit increase in the number of activities is associated with an increase in weekly sales of 93 units.