Showing posts from December, 2019

Using Regression Analysis to Make Better Strategic Decisions

1.  Regression analysis is a process that evaluates the relationship between two or more variables. Companies sometimes desire to determine the strength of those relationships to better evaluate advantageous options. Executives may also utilize such statistical methods if they want to make a decision about future unknown events. Business wish they could look into a "crystal ball" but have a hard time doing so without good data to make the most logical decisions. The better a company is at managing data, the less hazy that ball will look. Consider you are a company that desires to invest in Product Line A and Product Line B. The problem is that you have limited resources and must choose between the two. Ultimately you will want to measure the market (through some type of data extraction method) and plot your measurements on an XY axis scatter type chart. When stepping back and taking a look you might start seeing some bunches, relationships and other "aha!" t