Question

You are now the manager of your favorite grocery store. Your job is to improve the store aesthetics and products to make sure that more shoppers come in to shop. You are asked to come up with a regression analysis to answer this question:

If you were to run a logistic regression analysis, what would your dependent variable be? What would the 1, 0 indicate?

Answer 1

If we were to run a logistic regression analysis in the given context, we could choose the following dependent variables:

1. As we want to make sure that more shoppers come in to the shop, one important thing is to see whether the people who have earlier visited the shop visit the shop again or not. Hence, the dependent variable will be the probability of the person returning back.

1 = Success = Person returns back

0 = Failure = Person didn't return back

2. We could also choose a dependent variable that the person who visits the shop buys something or not. It would depend on the assortment, variety of products and aesthetics. Hence, the probability that a person who visits buys something.

Success = 1 = Person who enters the shop buys something

Failure = 0 = Person who enters the shop goes back without buying anything

3. Another dependent variable which we could choose is the probability of a person to visit our shop who are visiting the market or area. The data collection could be difficult in this regard.

Success = 1 = Person visiting the market area enter the shop

Failure = 0 = Person visiting the market area doesn't enter the shop