Differentiate between
correlation
and
regression
in the context of business. Describe the circumstances under which a marketing manager would benefit more from correlation than from regression. Also, describe the circumstances under which the marketing manager would benefit more from regression than from correlation.
In terms of the type of information, what is the difference between correlation and the tests of differences (
t
-test and chi-square test)?
Justify your answers with examples and reasoning.
Regression is one of the most widely used statistical techniques. In business, it is often used within the realm of what is known as
predictive analytics
—estimating the use of statistical techniques to estimate the likelihood or magnitude of future outcomes of interest. However, regression is also an
explanatory
tool because the regression model explains the variability in dependent variables with the help of one or more independent variables.
From the marketing management perspective, discuss regression as an explanatory and a predictive tool. What are the major differences between an explanatory and a predictive tool? In terms of the
goodness of fit
, what is the most important indicator of regression as an explanatory tool and as a predictive tool?
Justify your answers with examples and reasoning
.
Differentiate between correlation and regression in the cont.docx
1. Differentiate between
correlation
and
regression
in the context of business. Describe the circumstances under
which a marketing manager would benefit more from correlation
than from regression. Also, describe the circumstances under
which the marketing manager would benefit more from
regression than from correlation.
In terms of the type of information, what is the difference
between correlation and the tests of differences (
t
-test and chi-square test)?
Justify your answers with examples and reasoning.
Regression is one of the most widely used statistical techniques.
In business, it is often used within the realm of what is known
as
predictive analytics
—estimating the use of statistical techniques to estimate the
likelihood or magnitude of future outcomes of interest.
However, regression is also an
explanatory
tool because the regression model explains the variability in
dependent variables with the help of one or more independent
variables.
From the marketing management perspective, discuss regression
as an explanatory and a predictive tool. What are the major
differences between an explanatory and a predictive tool? In
terms of the
goodness of fit
, what is the most important indicator of regression as an
explanatory tool and as a predictive tool?
