Question

Provide an example based on your professional experience of a situation in which using a multiple regression model or nonlinear regression model may have helped your organization make a better decision. Provide sources. Please do not use anything already in Chegg Database!!

Answer 1

Let us discuss the example of multiple regression model for the estimation of the profit of company or an organization. The profit of the company is depends on several factors or variables. For example, the profit of the company is depends on the average employee performance, advertising, overtime working, quality of material or service, total investment, etc. So, by using these variables or factors we would estimate the profit of company based on these variables or factors. For this multiple regression model, the dependent variable or response variable would be profit of the company while independent variable or predictor or explanatory variables are given as average employee performance, advertising, overtime working, quality of material or service, total investment, etc. For this multiple regression we can also add some more independent variables which are correlated to the dependent variable profit of the company. By using this multiple regression model, we can easily estimate the profit of company in an advance and we can also try to fit independent variables as required.