Question

Summarize a business scenario relevant to your field of study and discuss how multiple regression analysis can be used in the scenario. Explain what type of data you could collect and how you could use that output to make business decisions.

Answer 1

Multiple regression analysis used to estimate the relationship between the dependent variable and two or more independent variables for example the relationship between salary of the employees and their experience, education and their working time.

If you have a cool drink business then by multiple regression analysis we can find relationship between temperature , pricing, number of workers to the revenue or profit there are so many use of regression in business, predictive use by creating regression equations we can predict the value of dependent variable . And it helps for correcting the errier in business and supporting to take positive decisions and goes on.

In every business the main thing that helps the growth of the company and also the business is employees of respective companies . If the employees are not confident, efficient and intelligent that says indirectly that the company is not going to success. But if employees use their time , inteliintell, and that kind of abilities it will surely help out the progress in profit .

In these kind problems we can have survey amongs the employees and can give them a mark and by this mark we can understand how they are helping the company business. Then we can decide an emplyeem has to continue or not .

Multiple regression has uses in the business management one is attribute survey carried out by manager for assessing overall rating of the company employees. Attribute can be said as the variable in the term of regression.

We can use several types of indelindepe variables like working time, number of leaves ,ability and so on and the dependent variable is that overall rating we can make multiple regression models with these indepedinde and dependent variable and it help in business management.