explain how linear regression could be used in business decision making?

Expert Solution

Linear regression model is used for causal analysis. This means that it is used to relate one variable on the other. In this case, there isn’t much avenue where a grocery store can use regression analysis. However, they could use the daily data to create a model where they can predict the demand for products.

For example, the general idea is that during the beginning of a month and the first weekends usually see a spike in number of customers. This is because people tend to do grocery shopping for the month on the first weekend when they get their paycheck. Thus the footfall is higher. However, this is just an assumption.

A grocery store can use the daily sales data on two independent variable called the date and the day of the week. These two factors’ influence on the sales could provide the grocery store to predict how many customers will be expected and what kind of sales will be expected. This could help them plan their staffing and stocks.

orchestra answered 1 year ago

Explain how linear regression could be used to test your mock study hypothesis. A mock study...

Explain how linear regression could be used to test your mock study hypothesis. A mock study on the shortage of nursing faculty.

how is technology used for decision making?

Decision trees are used to graphically depict a decision making situation. Propose a business decision in...

Decision trees are used to graphically depict a decision making situation. Propose a business decision in which you intend to use Expected Monetary Value (EMV) as your decision making technique. Describe how you would determine the best decision using the EMV criterion with a decision tree.(If you have no experience with this type thing, then try to imagine a situation in which EMV and Decision Trees could be used and propose an example) In all discussion question responses ensure that...

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).

How is the concept of incremental analysis used in decision-making?

What does it mean when someone says "You get what you measured"? What are the impacts of information technology?

Explain, how the Mini-Max algorithm is used in decision-making and game theory. Make sure to explain...

Explain, how the Mini-Max algorithm is used in decision-making and game theory. Make sure to explain how this algorithm applies the utility function to get the utility values for the terminal states. Feel free to add any diagram/tree structure to represent all the possible moves that allow a game to move from one state to the next state. Also, discuss how the alpha-beta pruning approach is used for optimization.

Please explain ONE of the important financial decision making areas where business financial decision making techniques...

Please explain ONE of the important financial decision making areas where business financial decision making techniques can be applied to assist individuals and families in making better personal financial decisions. Discuss how and why the selected area is an important financial decision making area and explain how the application of the business financial decision making technique that you selected can help individuals make better decisions and reach their financial goals.

Question

explain how linear regression could be used in business decision making?

Solutions

Expert Solution

Related Solutions