American History a Detailed Case

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ME Assignment

Regression Analysis

1. What is multiple regression and why have you used it?

Multiple regression is primarily an extension of linear regression model; this is used when the dependent factor or the estimate that we predict depends on more than two factors or variables which are known as independent factors. The agenda of multiple regression is to learn more about the relationship between dependent and numerous independent factors. Since we have more than one factor effecting the sales, multiple regression is considered effective to give accurate estimates or forecasts.

1. What is linear regression?

Linear regression is establishing a relationship between dependent and independent factors in a linear approach. Linear regression line has an equation of the form Y = a + bX, where ‘X’ is the explanatory variable and ‘Y’ is the dependent variable. The slope of the line is ‘b’, and ‘a’ is the intercept (the value of y when x = 0).

1. What is R Square?

R-squared is a statistical measure of how close the data are to the fitted regression line. It is also known as the coefficient of determination. It is also index how effective is your model; the higher the R-squared, the better the model fits your data.

1. What is Least Square Method?
   Least square method is a method for estimating the unknown parameters in a linear regression model with a goal of minimising sum of the squares of the differences between the observed responses in the given data set and those predicted by the linear function.

1. What is Time lag?
   The effect of the previous months sales on the next month sales is defined as time lag.

1. What is seasonal index?

Seasonal Index is used to determine the demand over the course. This index is based on data from previous years that highlights seasonal differences in consumption. In this particular context, the variation in case shipments due to plant shutdowns and vacations constitutes to the seasonal Index.

1. What is standard Error?

Standard error is the standard deviation of its sampling distribution, or sometimes an estimate of that standard deviation; the standard error includes the variation between the calculated mean of the population.

1. How do you decide your model is appropriate?

We decide whether the model is concrete or no with the help of R-Square, higher the R-square more acceptable is the model. In the regression model that we have worked out the R-square is 0.93; where we have taken 10 variables into consideration.

1. What are consumer packs?

Consumer packs are the free samples or not for sale samples that Harman foods distributed as a part of their promotional activities to accelerate their sales.

1. What are dealer allowances?

Dealer allowances are the incentives that are given to the dealers which is again a part of their promotional activities.