Statistics For Managers Example

Statistics For Managers Example Statistics For Managers – Coursework Example Statistics for Managers Regression Analysis Regression Analysis is a procedure that uses statistics to estimate the connection between different variables. The dependent variables rely on other factors to make estimations while independent variables are rigid and normally operate on their own (Montgomery, 2011). For instance, a manager can suggest that sales of a product depend on the promotional strategies used or the prices charged. This implies that sales are dependent variables because they depend on price and product promotion while price and promotion are the independent variables (Montgomery, 2011). In this regard, if a regression model uses one independent variable, then it is a simple model. In situations where two or extra independent variables are applied, then the model is a multiple. Regression analysis requires close scrutiny of the variables to know the ones that influence each other directly or indirectly.The benefit of performing a regression analysis in the business context is that it helps in decision making. For instance, management can adopt a strategy that contributes to higher sales and returns by considering the variables used (Montgomery, 2011). Another benefit is that it helps in speculative purposes where a company can use the present results to predict future results. This applies if a company studies changes in consumer spending to determine the future production of goods and pricing (Montgomery, 2011). The other benefit of regression analysis to businesses is that it assists in the detection and correction of mistakes. Sometimes, managers make predictions or decisions using wrong figures, but the results do not reflect the correct information. ReferenceMontgomery, D. C. (2011). Introduction to linear regression analysis. Oxford: Wiley-Blackwell.