Predictive Analysis of Business Assesment

PREDICTIVE
ANALYSIS

Introduction and Case Background
• The study is based on the Wagner printers performance on week basis. They produce
advertising displays and some standardized work like business card.
• It has been seen that due to market price increases the cost reflect on work. The custom work is
done on the basis of job order.
• The aim of this study is to determine the relationship between labor hours and machine hours
based on overhead.
• The data has been collected during the period of 52 weeks.
• The study is forecasted based on the multiple regression analysis.
• In this study the variable overhead has been taken as a dependent variable and labour hours and
machine hours has been taken as a independent variable.
• Also the study forecast normal probability plot, residual plot, standardized residual and
probability output.

Hypothesis
Null hypothesis: There is no relationship between labor hours and
machine hours among the overhead.
Alternative hypothesis: There is a relationship between labor hours
and machine hours among the overhead.

Regression model and Regression Output
The multiple linear regression model is as below
Overhead= 14630.26+28.52* labour
hours+79.11*machine hours