Table OLS model summaries of HATCO data, coefficients shown with standard error in brackets.

. Dependent variable: Usage Level (X9)

#
Name Variable
Exp. Model 1
Model 2a
Model 3b
Model 4c
Model 5d
Model 6e
Sign (Enter)
(Best SQRT X6 (Backward)
(Stepwise)
(Alternate
(Personal)
Backwards)
Backward no
X1)
0
Constant
13.287(4.340)
2.672(4.071)
13.671(4.189)
8.250(4.119)
14.634(4.146)
6.908(4.971)
HATCO Variables
X1
Delivery speed
+
0.115(1.305)
0.219(0.489)
0.219(0.489)
X2
Price level
-0.108(1.369)
-0.214(0.509)
-0.205(0.512)
-0.163(0.616)
X3 Price flexibility
+
0.358(0.372)
0.374(0.356)
0.370(0.360)
0.370(0.360)
0.367(0.360)
0.390(0.447)
X4
Manufacturers image
-0.233 (0.482)
-0.239(0.468)
-0.226(0.470)
-0.226(0.470)
-0.237(0.476)
0.061(0.352)
X5
Service
+
0.383(2.539)
0.523(0.714)
0.269(0.737)
0.269(0.737)
0.508(0.723)
0.541(0.871)
X6
Salesforces image
+
0.358(0.669)
0.359(0.660)
0.359(0.660)
0.364(0.663)
SQRT SQRT X6
+
0.365(2.111)
0.003(0.142)
X6
X7
Product quality
+
0.043(0.278)
0.072(0.331)
Purchaser variables
X8
Size of firm
0.297(1.059)
X11 Delivery Speed
-0.276(1.141)
-0.289(1.052)
-0.297(1.059)
-0.294(1.062)
-0.244(1.364)
X12 Structure of
+
0.186(1.652)
0.205(1.597)
0.194(1.588)
0.194(1.588)
0.197(1.609)
0.102(1.964)
procurement
X13 Type of industry
-0.156(0.606)
-0.151(0.584)
-0.148(0.589)
-0.148(0.589)
-0.151(0.590)
-0.103(0.708)
X14N Type of buying situation
-0.356(0.994)
-0.346(0.965)
-0.349(0.977)
-0.349(0.977)
-0.353(0.984)
-0.247(1.134)
(New buy)
X14S Type of buying situation
+
0.349(0.945)
0.343(0.926)
0.350(0.927)
0.350(0.927)
0.343(0.935)
0.328(1.132)
(Straight rebuy)
Model Summary
Observations
100
100
100
100
100
100
2
2
R (adjusted R )
0.914(0.902)
0.914(0.905)
0.913(0.903)
0.913(0.903)
0.913(0.903)
0.875(0.859)
F-test (significance)
77.043(0.000)
94.981(0.000)
93.398(0.000)
93.398(0.000)
93.113(0.000)
85.939(0.000)
Significance Normal test
0.791(Normal) 0.791(Normal) 0.315(Normal) 0.315(Normal)
0.159(Normal) 0.784(Normal)
residuals

Multicollinearity? (vars
VIF > 10)

Not anymore

Not anymore

Not anymore

Not anymore

Not anymore

Model 1 is a ENTER regression model that takes into account the dependency of the X9 (dependent variable) on all the independent variables in a
linear order in regression analysis. This model however eliminates independent variable X8. The model has a high R2 and adjusted R2 value but the
F-test significance is the lowest indicating that majority of the data set do not fit the normal distribution compared to other models.
a

Model 2 is the result of both the BACKWARD and the NON-LINEAR (SQRT) model for an independent variable X6. In this model all significant
independent variables are linear except X6 which is of the order 0.5. In this model, while the R2 value is same as that of ENTER regression model,
there is improvement in the adjusted R2 value. The F-test values are also significantly higher than that of Model 1 and the residual normal test
value is also significant. This model is proposed.
b

Using the BACKWARD regression (Model 3) X2 variable is removed first followed by variable X7. One observable difference between Model 2
(BEST) and Model 3 (Backward) is the value of constant and inter-change of independent variables 1 and 2 with different signs and similar
coefficients.
c

For the STEPWISE regression (Model 4), X2, X7 and X11 variables are removed. It has the same R2 and adjusted R2 value as in model 3. In addition,
the F-test significance and residual values are same as model 3. The constant value is lesser in model 3 and X8 variables becomes significant
however there is no improvement in overall model significance. Therefore, this model is also not proposed.
d

Model 5 is an alternate BACKWARD model with no X1. This model demonstrates close match of coefficients in different independent variables
with the best model. However, this model is also not proposed because of low F-test and residual normal test values indicating a weak model for
majority of dataset and outliers.
e

For the PERSONAL model, a new variable (Modified SQRT X6) is introduced and as required the data in the first row of this column is changed to
introduce a significant data variation. A transformed backward regression is then performed with the new data set. The R2 and adjusted R2 value
goes down and so does the F-test value and residual normal values.