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DQ1
Identify two business situations or problems within your current organization or industry. Articulate how one of these lends itself to a simple linear regression and how one does not. Why is simple linear regression appropriate to address one situation or problem but not the other? Support your ideas with evidence from the readings.
For dq2 I need two replies
DQ2
You are the vice president of sales for TerraFirma, a company that manufactures outdoor sporting gear. You receive a report on your desk one morning that claims little or no relationship between the University of Michigan Consumer Sentiment Index (CSI) and outdoor sporting gear sales. The claim is based on a very low R2 of the simple regression model, using these two variables (CSI and sales). Discuss how you would (or should) react to this report and why. What clarifying questions might you ask?
A firm's expected profit without information is $49,495, while its expected value with test information is $57,902. If the cost of the test is $14,710, then the expected value of information is
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