Question: Refer to Problem.

a. Develop the correlation matrix that includes all independent variables and the dependent variable. Predict the order that the variables will be selected into the model if forward selection stepwise regression is used.

b. Use forward selection stepwise regression to develop a model for predicting the number of calls that the company will receive. Write a report that describes what has taken place at each step of the regression process.

c. Compare the forward selection stepwise regression results in part b with the backward elimination results determined in Problem. Which model would you choose? Explain your answer.

Problem: The Western State Tourist Association gives out pamphlets, maps, and other tourist-related information to people who call a toll-free number and request the information. The association orders the packets of information from a document-printing company and likes to have enough available to meet the immediate need without having too many sitting around taking up space. The marketing manager decided to develop a multiple regression model to be used in predicting the number of calls that will be received in the coming week. A random sample of 12 weeks is selected, with the following variables:

y = Number of calls

x₁ = Number of advertisements placed the previous week

x₂ = Number of calls received the previous week

x₃ = Number of airline tour bookings into Western cities for the current week

These data are in the data file called Western States.

a. Develop the multiple regression model for predicting the number of calls received, using backward elimination stepwise regression.

b. At the final step of the analysis, how many variables are in the model?

c. Discuss why the variables were removed from the model in the order shown by the stepwise regression.