A marketing company based out of New York City is doing well andis looking to expand internationally. The CEO and VP of Operationsdecide to enlist the help of a consulting firm that you work for,to help collect data and analyze market trends.
You work for Mercer Human Resources. The Mercer Human ResourceConsulting website (www.mercer.com) lists prices of certain itemsin selected cities around the world. They also report an overallcost-of-living index for each city compared to the costs ofhundreds of items in New York City (NYC). For example, London at88.33 is 11.67% less expensive than NYC.
More specifically, if you choose to explore the website furtheryou will find a lot of fun and interesting data. You can explorethe website more on your own after the course concludes.
Down below, you will find the 2018 data for 17 cities in thedata set Cost of Living. Included are the 2018 cost of livingindex, cost of a 3-bedroom apartment (per month), price of monthlytransportation pass, price of a mid-range bottle of wine, price ofa loaf of bread (1 lb.), the price of a gallon of milk and pricefor a 12 oz. cup of black coffee. All prices are in U.S.dollars.
You use this information to run a Multiple LinearRegression to predict Cost of living, along with calculatingvarious descriptive statistics. This is given in the Excel output(that is, the MLR has already been calculated. Your task is tointerpret the data). Based on this information, in which cityshould you open a second office in? You must justify your answer.If you want to recommend 2 or 3 different cities and rank thembased on the data and your findings, this is fine as well. Thisshould be ¾ to 1 page, no more than 1 single-spaced page in length,using 12-point Times New Roman font. You do not need to do anycalculations, but you do need to pick a city to open a secondlocation at and justify your answer based upon the provided resultsof the Multiple Linear Regression. Think of this assignment as thefirst page of a much longer report, known as an Executive Summary,that essentially summarizes your findings briefly and at a highlevel. This needs to be written up neatly and professionally. Thiswould be something you would present at a board meeting in acorporate environment.
What is an Executive Summary?
To help you make this decision here are some things toconsider:
Based on the MLR output, what variable(s) is/aresignificant?
From the significant predictors, review the mean, median, min,max, Q1 and Q3 values? It might be a good idea to compare thesevalues to what the New York value is for that variable. RememberNew York is the baseline as that is where headquarters arelocated.
Based on the descriptive statistics, for the significantpredictors, what city/cities has the best potential? What city orcities fall above or below the median and/or the mean? What city orcities are in the upper 3rd quartile? Or the bottomquartile? These are some things to consider not necessarilyquestions you need to answer in your Executive Summary. But theyare questions to help guide you along in your analysis
| City | Cost of Living Index | Rent (in City Centre) | Monthly Pubic Trans Pass | Loaf of Bread | Milk | Bottle of Wine (mid-range) | Coffee |
| Mumbai | 31.74 | $1,642.68 | $7.66 | $0.41 | $2.93 | $10.73 | $1.63 |
| Prague | 50.95 | $1,240.48 | $25.01 | $0.92 | $3.14 | $5.46 | $2.17 |
| Warsaw | 45.45 | $1,060.06 | $30.09 | $0.69 | $2.68 | $6.84 | $1.98 |
| Athens | 63.06 | $569.12 | $35.31 | $0.80 | $5.35 | $8.24 | $2.88 |
| Rome | 78.19 | $2,354.10 | $41.20 | $1.38 | $6.82 | $7.06 | $1.51 |
| Seoul | 83.45 | $2,370.81 | $50.53 | $2.44 | $7.90 | $17.57 | $1.79 |
| Brussels | 82.2 | $1,734.75 | $57.68 | $1.66 | $4.17 | $8.24 | $1.51 |
| Madrid | 66.75 | $1,795.10 | $64.27 | $1.04 | $3.63 | $5.89 | $1.58 |
| Vancouver | 74.06 | $2,937.27 | $74.28 | $2.28 | $7.12 | $14.38 | $1.47 |
| Paris | 89.94 | $2,701.61 | $85.92 | $1.56 | $4.68 | $8.24 | $1.51 |
| Tokyo | 92.94 | $2,197.03 | $88.77 | $1.77 | $6.46 | $17.75 | $1.49 |
| Berlin | 71.65 | $1,695.77 | $95.34 | $1.24 | $3.52 | $5.89 | $1.71 |
| Amsterdam | 85.9 | $2,823.28 | $105.93 | $1.33 | $4.34 | $7.06 | $1.71 |
| New York | 100 | $5,877.45 | $121.00 | $2.93 | $3.98 | $15.00 | $0.84 |
| Sydney | 90.78 | $3,777.72 | $124.55 | $1.94 | $4.43 | $14.01 | $2.26 |
| Dublin | 87.93 | $3,025.83 | $144.78 | $1.37 | $4.31 | $14.12 | $2.06 |
| London | 88.33 | $4,069.99 | $173.81 | $1.23 | $4.63 | $10.53 | $1.90 |
| | | | | | | |
| mean | 75.49 | $2,463.12 | $78.01 | $1.47 | $4.71 | $10.41 | $1.76 |
| median | 82.2 | $2,354.10 | $74.28 | $1.37 | $4.34 | $8.24 | $1.71 |
| min | 31.74 | $569.12 | $7.66 | $0.41 | $2.68 | $5.46 | $0.84 |
| max | 100 | $5,877.45 | $173.81 | $2.93 | $7.90 | $17.75 | $2.88 |
| Q1 | 66.75 | $1,695.77 | $41.20 | $1.04 | $3.63 | $7.06 | $1.51 |
| Q3 | 88.33 | $2,937.27 | $105.93 | $1.77 | $5.35 | $14.12 | $1.98 |
| New York | 100 | $5,877.45 | $121.00 | $2.93 | $3.98 | $15.00 | $0.84 |
