Linear regression is a highly effective data analysis method that accurately estimates the value of unknown data using related and known data. This is achieved using a linear equation that accurately models the quantitative relationship between the dependent (unknown) and independent (known) variables. In other words, by looking at how one variable affects another, this method can accurately forecast the value of the dependent variable. It involves choosing the variable to forecast and using another variable to make informed predictions about its value. In experiments, the independent variable is the cause, and its value remains constant while other variables have been modified. On the other hand, the dependent variable is the effect, and changes influence its value in the independent variable. As I began my business, I struggled with determining the appropriate pricing for my products. It was important that the prices were reasonable while allowing for a profit. The pricing had to factor in the cost of ingredients and labor for each baked good. To assess the impact of pricing on sales, I analyzed product pricing data for the first year as the independent variable and product sales data for the first year as the dependent variable. By identifying the effect of product pricing on sales, I made informed decisions on pricing and sales targets for each product.
Linear regression is a highly effective data analysis method that accurately estimates the value of unknown data using related and known data. This is achieved using a linear equation that accurately models the quantitative relationship between the dependent (unknown) and independent (known) variables.
In other words, by looking at how one variable affects another, this method can accurately forecast the value of the dependent variable. It involves choosing the variable to forecast and using another variable to make informed predictions about its value.
In experiments, the independent variable is the cause, and its value remains constant while other variables have been modified. On the other hand, the dependent variable is the effect, and changes influence its value in the independent variable.
As I began my business, I struggled with determining the appropriate pricing for my products. It was important that the prices were reasonable while allowing for a profit. The pricing had to factor in the cost of ingredients and labor for each baked good. To assess the impact of pricing on sales, I analyzed product pricing data for the first year as the independent variable and product sales data for the first year as the dependent variable. By identifying the effect of product pricing on sales, I made informed decisions on pricing and sales targets for each product.
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