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Course Number:Semester:MKTG 3509: Customer Data AnalyticsSummer I, 2020Homework 4: Multiple Linear Regression AnalysisObjectivesThe objectives of this exercise are to: 1) practice building and evaluating predictive models using multipleregression analysis, and 2) learn how to use a multiple regression prediction equation to score a database ofprospective customers.BackgroundSara Beckman, director of marketing for the upscale specialty catalog, Tuscan Lifestyles, which specializesin cookware, tableware, linens, and decorative home accessories in the spirit of the Tuscany region of Italy,wants to acquire new customers and grow the customer base for Tuscan Lifestyles.For several years, Tuscan Lifestyles, has maintained a loyalty program, whereby customers are assigned toone of three loyalty segments, Gold, Silver or Bronze, based on Total Dollars Spent To Date with TuscanLifestyles. Saras team would like to identify prospective customers that have the potential to become Goldin the future as these customers are more profitable than the other loyalty segments.Over the past year, Sara has purchased external demographic and financial data on its customers and mergedthat data into the current marketing database. Sara would like to identify the characteristics (variables) thatare predictive of Total Dollars Spent To Date, which is the variable that determines membership to theloyalty segments. She plans on using multiple regression analysis ...


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