TASK 4C

store.df <-read.csv(paste ("Store24 (1).csv", sep=""))
View(store.df)
summary(store.df)
##      store          Sales             Profit          MTenure      
##  Min.   : 1.0   Min.   : 699306   Min.   :122180   Min.   :  0.00  
##  1st Qu.:19.5   1st Qu.: 984579   1st Qu.:211004   1st Qu.:  6.67  
##  Median :38.0   Median :1127332   Median :265014   Median : 24.12  
##  Mean   :38.0   Mean   :1205413   Mean   :276314   Mean   : 45.30  
##  3rd Qu.:56.5   3rd Qu.:1362388   3rd Qu.:331314   3rd Qu.: 50.92  
##  Max.   :75.0   Max.   :2113089   Max.   :518998   Max.   :277.99  
##     CTenure              Pop             Comp          Visibility  
##  Min.   :  0.8871   Min.   : 1046   Min.   : 1.651   Min.   :2.00  
##  1st Qu.:  4.3943   1st Qu.: 5616   1st Qu.: 3.151   1st Qu.:3.00  
##  Median :  7.2115   Median : 8896   Median : 3.629   Median :3.00  
##  Mean   : 13.9315   Mean   : 9826   Mean   : 3.788   Mean   :3.08  
##  3rd Qu.: 17.2156   3rd Qu.:14104   3rd Qu.: 4.230   3rd Qu.:4.00  
##  Max.   :114.1519   Max.   :26519   Max.   :11.128   Max.   :5.00  
##     PedCount         Res          Hours24       CrewSkill    
##  Min.   :1.00   Min.   :0.00   Min.   :0.00   Min.   :2.060  
##  1st Qu.:2.00   1st Qu.:1.00   1st Qu.:1.00   1st Qu.:3.225  
##  Median :3.00   Median :1.00   Median :1.00   Median :3.500  
##  Mean   :2.96   Mean   :0.96   Mean   :0.84   Mean   :3.457  
##  3rd Qu.:4.00   3rd Qu.:1.00   3rd Qu.:1.00   3rd Qu.:3.655  
##  Max.   :5.00   Max.   :1.00   Max.   :1.00   Max.   :4.640  
##     MgrSkill        ServQual     
##  Min.   :2.957   Min.   : 57.90  
##  1st Qu.:3.344   1st Qu.: 78.95  
##  Median :3.589   Median : 89.47  
##  Mean   :3.638   Mean   : 87.15  
##  3rd Qu.:3.925   3rd Qu.: 99.90  
##  Max.   :4.622   Max.   :100.00

TASK 4D

library(psych)
describe(store.df)
##            vars  n       mean        sd     median    trimmed       mad
## store         1 75      38.00     21.79      38.00      38.00     28.17
## Sales         2 75 1205413.12 304531.31 1127332.00 1182031.25 288422.04
## Profit        3 75  276313.61  89404.08  265014.00  270260.34  90532.00
## MTenure       4 75      45.30     57.67      24.12      33.58     29.67
## CTenure       5 75      13.93     17.70       7.21      10.60      6.14
## Pop           6 75    9825.59   5911.67    8896.00    9366.07   7266.22
## Comp          7 75       3.79      1.31       3.63       3.66      0.82
## Visibility    8 75       3.08      0.75       3.00       3.07      0.00
## PedCount      9 75       2.96      0.99       3.00       2.97      1.48
## Res          10 75       0.96      0.20       1.00       1.00      0.00
## Hours24      11 75       0.84      0.37       1.00       0.92      0.00
## CrewSkill    12 75       3.46      0.41       3.50       3.47      0.34
## MgrSkill     13 75       3.64      0.41       3.59       3.62      0.45
## ServQual     14 75      87.15     12.61      89.47      88.62     15.61
##                  min        max      range  skew kurtosis       se
## store           1.00      75.00      74.00  0.00    -1.25     2.52
## Sales      699306.00 2113089.00 1413783.00  0.71    -0.09 35164.25
## Profit     122180.00  518998.00  396818.00  0.62    -0.21 10323.49
## MTenure         0.00     277.99     277.99  2.01     3.90     6.66
## CTenure         0.89     114.15     113.26  3.52    15.00     2.04
## Pop          1046.00   26519.00   25473.00  0.62    -0.23   682.62
## Comp            1.65      11.13       9.48  2.48    11.31     0.15
## Visibility      2.00       5.00       3.00  0.25    -0.38     0.09
## PedCount        1.00       5.00       4.00  0.00    -0.52     0.11
## Res             0.00       1.00       1.00 -4.60    19.43     0.02
## Hours24         0.00       1.00       1.00 -1.82     1.32     0.04
## CrewSkill       2.06       4.64       2.58 -0.43     1.64     0.05
## MgrSkill        2.96       4.62       1.67  0.27    -0.53     0.05
## ServQual       57.90     100.00      42.10 -0.66    -0.72     1.46
mean(store.df$Profit) 
## [1] 276313.6
sd(store.df$Profit)
## [1] 89404.08
mean(store.df$MTenure)
## [1] 45.29644
sd(store.df$MTenure)
## [1] 57.67155
mean(store.df$CTenure) 
## [1] 13.9315
sd(store.df$CTenure) 
## [1] 17.69752

TASK 4F

    TOP 10
TOP.df<- store.df[order(-store.df$Profit),]
head(TOP.df,10)[,1:5] 
##    store   Sales Profit   MTenure    CTenure
## 74    74 1782957 518998 171.09720  29.519510
## 7      7 1809256 476355  62.53080   7.326488
## 9      9 2113089 474725 108.99350   6.061602
## 6      6 1703140 469050 149.93590  11.351130
## 44    44 1807740 439781 182.23640 114.151900
## 2      2 1619874 424007  86.22219   6.636550
## 45    45 1602362 410149  47.64565   9.166325
## 18    18 1704826 394039 239.96980  33.774130
## 11    11 1583446 389886  44.81977   2.036961
## 47    47 1665657 387853  12.84790   6.636550
     BOTTOM 10
     
tail(TOP.df,10)[,1:5]
##    store   Sales Profit     MTenure   CTenure
## 37    37 1202917 187765  23.1985000  1.347023
## 61    61  716589 177046  21.8184200 13.305950
## 52    52 1073008 169201  24.1185600  3.416838
## 54    54  811190 159792   6.6703910  3.876797
## 13    13  857843 152513   0.6571813  1.577002
## 32    32  828918 149033  36.0792600  6.636550
## 55    55  925744 147672   6.6703910 18.365500
## 41    41  744211 147327  14.9180200 11.926080
## 66    66  879581 146058 115.2039000  3.876797
## 57    57  699306 122180  24.3485700  2.956879

TASK 4G

library(car)
## 
## Attaching package: 'car'
## The following object is masked from 'package:psych':
## 
##     logit
scatterplot(store.df$Profit ~ store.df$MTenure , main="Profit vs MTenure Scatterplot", xlab="MTenure", ylab="Profit")

TASK 4H

library(car)
scatterplot(store.df$Profit ~ store.df$CTenure , main="Profit vs CTenure Scatterplot", xlab="CTenure", ylab="Profit")

TASK 4I

round(cor(store.df, use = "complete.obs", method = "kendall"),2)
##            store Sales Profit MTenure CTenure   Pop  Comp Visibility
## store       1.00 -0.16  -0.14   -0.01   -0.01 -0.19 -0.02      -0.02
## Sales      -0.16  1.00   0.78    0.26    0.14  0.20 -0.18       0.15
## Profit     -0.14  0.78   1.00    0.25    0.19  0.23 -0.26       0.14
## MTenure    -0.01  0.26   0.25    1.00    0.10 -0.04  0.12       0.01
## CTenure    -0.01  0.14   0.19    0.10    1.00 -0.13 -0.11       0.05
## Pop        -0.19  0.20   0.23   -0.04   -0.13  1.00 -0.11       0.01
## Comp       -0.02 -0.18  -0.26    0.12   -0.11 -0.11  1.00       0.07
## Visibility -0.02  0.15   0.14    0.01    0.05  0.01  0.07       1.00
## PedCount   -0.14  0.31   0.32    0.00   -0.05  0.46 -0.22      -0.11
## Res        -0.03 -0.13  -0.15    0.04   -0.10 -0.17  0.19       0.02
## Hours24     0.02  0.07   0.02   -0.09    0.02 -0.24  0.10       0.04
## CrewSkill  -0.03  0.11   0.11    0.12    0.17  0.16 -0.05      -0.18
## MgrSkill   -0.06  0.18   0.15    0.19    0.02  0.03  0.17       0.01
## ServQual   -0.23  0.28   0.25    0.17    0.06  0.06  0.06       0.16
##            PedCount   Res Hours24 CrewSkill MgrSkill ServQual
## store         -0.14 -0.03    0.02     -0.03    -0.06    -0.23
## Sales          0.31 -0.13    0.07      0.11     0.18     0.28
## Profit         0.32 -0.15    0.02      0.11     0.15     0.25
## MTenure        0.00  0.04   -0.09      0.12     0.19     0.17
## CTenure       -0.05 -0.10    0.02      0.17     0.02     0.06
## Pop            0.46 -0.17   -0.24      0.16     0.03     0.06
## Comp          -0.22  0.19    0.10     -0.05     0.17     0.06
## Visibility    -0.11  0.02    0.04     -0.18     0.01     0.16
## PedCount       1.00 -0.26   -0.29      0.12     0.05    -0.05
## Res           -0.26  1.00   -0.09     -0.16    -0.03     0.09
## Hours24       -0.29 -0.09    1.00      0.14     0.00     0.04
## CrewSkill      0.12 -0.16    0.14      1.00     0.05    -0.01
## MgrSkill       0.05 -0.03    0.00      0.05     1.00     0.24
## ServQual      -0.05  0.09    0.04     -0.01     0.24     1.00

TASK 4J

"Correlationg between Profit  MTenure"
## [1] "Correlationg between Profit  MTenure"
round(cor(store.df$Profit, store.df$MTenure),2)
## [1] 0.44
"Correlationg between Profit  CTenure"
## [1] "Correlationg between Profit  CTenure"
round(cor(store.df$Profit, store.df$CTenure),2)
## [1] 0.26

TASK 4K

library(corrgram)
corrgram(store.df, lower.panel=panel.shade, upper.panel=panel.pie,diag.pane=panel.minmax,text.panel=panel.txt, main="Corrgram of Store Variables")

TASK 4I

cor.test(store.df$Profit,store.df$MTenure)
## 
##  Pearson's product-moment correlation
## 
## data:  store.df$Profit and store.df$MTenure
## t = 4.1731, df = 73, p-value = 8.193e-05
## alternative hypothesis: true correlation is not equal to 0
## 95 percent confidence interval:
##  0.2353497 0.6055175
## sample estimates:
##       cor 
## 0.4388692
cor.test(store.df$Profit,store.df$CTenure)
## 
##  Pearson's product-moment correlation
## 
## data:  store.df$Profit and store.df$CTenure
## t = 2.2786, df = 73, p-value = 0.02562
## alternative hypothesis: true correlation is not equal to 0
## 95 percent confidence interval:
##  0.03262507 0.45786339
## sample estimates:
##       cor 
## 0.2576789

TASK 4M

summary(lm(Profit~ MTenure + CTenure + Comp + Pop + PedCount + Res + Hours24 + Visibility, data=store.df))
## 
## Call:
## lm(formula = Profit ~ MTenure + CTenure + Comp + Pop + PedCount + 
##     Res + Hours24 + Visibility, data = store.df)
## 
## Residuals:
##     Min      1Q  Median      3Q     Max 
## -105789  -35946   -7069   33780  112390 
## 
## Coefficients:
##               Estimate Std. Error t value Pr(>|t|)    
## (Intercept)   7610.041  66821.994   0.114 0.909674    
## MTenure        760.993    127.086   5.988 9.72e-08 ***
## CTenure        944.978    421.687   2.241 0.028400 *  
## Comp        -25286.887   5491.937  -4.604 1.94e-05 ***
## Pop              3.667      1.466   2.501 0.014890 *  
## PedCount     34087.359   9073.196   3.757 0.000366 ***
## Res          91584.675  39231.283   2.334 0.022623 *  
## Hours24      63233.307  19641.114   3.219 0.001994 ** 
## Visibility   12625.447   9087.620   1.389 0.169411    
## ---
## Signif. codes:  0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
## 
## Residual standard error: 56970 on 66 degrees of freedom
## Multiple R-squared:  0.6379, Adjusted R-squared:  0.594 
## F-statistic: 14.53 on 8 and 66 DF,  p-value: 5.382e-12

TASK 4N

Explanatory variable whose beta coffecient is statistically not significant is Visibility

explanatory variable(s) whose beta-coefficients are not statistically significant are MTenure, CTenure, Pop, PedCount, Res, Hours24, Comp

TASK 4O

Expected change in the Profit at a store, if the Manager’s tenure i.e. number of months of experience with Store24, increases by one month = $810.971201

Expected change in the Profit at a store, if the Crew’s tenure i.e. number of months of experience with Store24, increases by one month = $1016.017324

TASK 4p

->The 10most profitable stores have higher manager tenures and crew tenures than the 10 least profitable stores. Some managers have very hign levels of experience and hence outliers exist.

->A greater increase in Profit can be expected by increasing crew tenure rather than manager tenure.

->Given that: F-statistic of 14.53; 8 datapoints; 66 degrees of freedom and p-value = 5.382e-12 we can say that Profit is closely related to {MTenure, CTenure, Comp, Pop, PedCount, Res, Hours24 and Visibility} all taken together as the p-value is very small.

From Multiple R-squared: 0.6379 we can say that this model accounts for 63.79% of the variances and Adjusted R-squared: 0.594 indicates 59.4% of weighted variances considered.

Profit = 7610.041 + 760.993(MTenure) + 944.978(CTenure) - 25286.887(Comp) + 3.667(Pop) + 34087.359(PedCount) + 91584.675(Res) + 63233.307(Hours24) + 12625.447(Visibility)