Regression analysis can be used to analyze how a change in one variable impacts the other variable, such as an increase in a marketing budget increasing sales. Find a unique area of your life where one variable impacts the other variable (being sure that are both measurable) and do a regression analysis on it. Remember to include the coefficient of determination as well as the test of significance. Share your results and make any comments as to whether or not there is a possibility of potential problems (causation or extrapolation) with your results.
Readings Required
Chapter 12 in Essentials of Modern Business Statistics: With Microsoft Office Excel
Quinino, R. C., Reis, E. A., & Bessegato, L. F. (2013). Using the coefficient of determination R^2 to test the significance of multiple linear regression. Teaching Statistics, 35(2), 84-88. doi:10.1111/j.1467-9639.2012.00525.x
Srigiri, S., Madasu, H., Vysetti, B., & Parth, V. (2014). Forecasting the distribution of heavy metals in soil and groundwater near municipal solid waste dumpsites using linear regression. Current Science (00113891), 107(1), 78-88.
Sample Solution
