He has spent years and years as an Analytics and Consumer Behaviour consultant in the industry. I would again like to give credits to this dataset to my Marketing Analytics professor, Prof. If you haven’t read the previous post in the series where I had shared the sample dataset, you may download the file from here. The simplest linear regression equation is this With what magnitude does each of the predictor variables impact the dependent variable.How well do the predictors explain the dependent variable?.When applied to a given dataset the tool tells us two things: Linear Regression is used on datasets that have one or more independent variables (predictors) and one dependent variable (dependent on the predictors). Linear Regression is a predictive analysis tool. Now, this article is about applying Linear Regression to the dataset that I shared with you in the last post.īut, before that, let me begin by quickly refreshing your memory about why Linear Regression is. I also highlighted that why as a marketer it is your responsibility to do it (accurately) than it is of any salesperson. In the first article in this series on How to do (accurate) Sales Forecasting, I gave you an overview of what sales forecasting is. In this article, I discuss Linear Regression as a method for sales forecasting (or for that matter, any forecasting).Īnd if you thought that Linear Regression is great, I will show you how Linear Regression is inaccurate and misleading in most of the circumstances. Those who have even a little bit of familiarity with statistics would know that Linear Regression is probably the first thing you learn in the context of prediction. There is something about predictions that fascinates us.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |