Question

D ULIWPIHOOLDA2bqui4403T%2f%2fiviJC When the relationship between two or more independent variables needs to be tested, a common tool to use is a regression analysis. Take for example a study that shows the relationship between gaming and teen violence; or a study that shows a correlation between fast food eating habits and obesity. • Describe 2 - 3 combinations of independent and dependent variables that you could test using a regression analysis. What types of results could the regression analysis yield? How could you use the knowledge gained from the test? • Describe a specific organizational application of correlation and regression that you will use in your future career. • Describe a situation in your current or former workplace where it! would be appropriate to use correlation and regression to predict a future outcome that the company may be interested in. If you do not have an example for your workplace, please substitute a company that you are familiar with instead. Why do you believe it is important for the company to look at these variables? What does the company

Answer 1

a) Regression analysis is a perfect tool to examine relationship between 2 or more variable of interest.

1) Oil - Supply and Price - Price of oil world over depends on supply from middle east ... whenever there is a political unrest in any of the middle eastern countries price of oil moves up. Also in stable situation the price remains constant and may also go down in case of over production

2) Food served in office canteen - Price and Quality - food served in offices at discounted rates may not be as tasty and satisfying as available in restaurants. Definitely price factor influences the quality of food and hence both are co-related.

b) Types of results yielded by Regression analysis are -

Prediction and confidence interval : These are types of confidence intervals used for predictions in regression analysis

• Prediction interval: It represents a range that a single new observation is likely to fall given specified settings of the predictors.
• Confidence Interval of the prediction: It represents a range that the mean response is likely to fall given specified settings of the predictors

Once the dependability of variables is established the same can be tweaked to the level required to bring about desired result.

c) Regression analysis is helpful statistical method that can be leveraged across an organization to determine the degree to which particular independent variables are influencing dependent variables.

The possible scenarios for conducting regression analysis to yield valuable, actionable business insights are endless.

Hence it can be used in future career by testing a proposal made by others to determine just how confident you are in that hypothesis! This will allow you to make more informed business decisions, allocate resources more efficiently, and ultimately boost chances of better career opportunity.