Why is regression analysis necessary in business? What two categories of regression models are used? Explain

Expert Solution

REgression analysis is all about data. It helps business understands the data points they have and use them specifically relationship between the data points - to make better decisions, including anything from predicting sales to understanding inventory levels and supply and demand.

The two categories of regression models that are frequently being used in business analytics are given as follows:

1) Simple Regresssion Analysis- Used to estimate the relationship between a dependent variable and a single independent variable , for example- the relationship between crop yields and rainfall.

2) Multiple Regression Analysis- Used to estimate the relationship between a dependent variable and two or more independent variables, for example- the relationship between salaries of employees and their experience and education.

Multiple regression analysis introduces several additional complexities but may produce more realistic results than simple regresssion analysis.

orchestra answered 1 year ago

Detail one instance in which regression analysis can be used in a business application. Explain what...

Detail one instance in which regression analysis can be used in a business application. Explain what insights can be gained, limitations that must be considered, and outline one case example used in real life.

Provide two examples of how regression analysis could be used in the business world. (if you...

Provide two examples of how regression analysis could be used in the business world. (if you are currently employed, think about how your firm could use regression analysis to evaluate and improve business performance).

This week, we learn about regression analysis and regression “models’.

This week, we learn about regression analysis and regression “models’. Discuss the role of regression analysis in business by using examples of how these models might work to make predictions. In your discussion, consider the various components of the output and how it might be of value to understanding the data.

Explain why a typical linear regression model can’t be used for time series analysis and describe...

Explain why a typical linear regression model can’t be used for time series analysis and describe an example of a time series

When choosing between two alternative regression models for the same data, what criteria should be used...

When choosing between two alternative regression models for the same data, what criteria should be used to select the best model?

What are the three categories used within the statement of cash flows? WHY are these categories...

What are the three categories used within the statement of cash flows? WHY are these categories important for understanding an organization's cash situation?

Why are business research, statistics, data, and decision models important to business? What is sampling? Explain...

Why are business research, statistics, data, and decision models important to business? What is sampling? Explain the importance of sampling from a managerial perspective. Provide examples.

What approach you recommend to identify wine quality, classification or regression models? Explain the reasons why?

Discuss the role of regression analysis in business by using examples of how these models might work to make predictions.