regression analysis 14

What conditions would justify the assumption of a constant contribution margin per

customer? Do you think those conditions are likely to hold here? To support your

conclusions, do a scatter plot of the sample data(ALL CUSTOMERS), and then use the sample data to run a

regression of purchase costs (dependent variable) on purchase revenues (independent

variable). [Hint: What is the meaning of the intercept term of your regression results?]. Then connect the findings from the regression to the case, like what does the intercept say about all customers. And at the end give a short paragraph summary.