submit 1 – 2 typed pages answering B u s i n e s s F i n a n c e
Part 1: Regression Analysis Experiments
Using the data provided in the Unit 4: Business Analytics Excel document (linked in Resources), run a series of regression analysis experiments. First, run a simple regression test against the data using the analytical or statistical software tool of your choice. Submit 1–2 typed pages answering the following questions:
- Which variable is the dependent?
- Which variable is the independent?
- How strong is the relationship between the variables?
- What are the best values of the intercept and slope relating to the data?
Part 2: Estimated Values and Actual Values
The last question in Part 1 is used to define best fit, which your software should recommend based on the evaluation of the data to create the line. It is up to you to provide reasonable definitions and values, that is, experiment with changing the estimated values against the actual values contained in the data set. Choosing reasonable values when estimating can cause errors called residuals. To understand the impact on the distance between the estimated valued and actual values, use the method of least squares. Submit 1–2 typed pages answering the following questions:
- What estimates do you use for each observation?
- Why did you use (plug) the estimate value for the observation itself? What was the error? Explain.
- What is the value of the intercept?
- What is the value of the slope?
- Where is the upper boundary? Where is the lower boundary?
- How does answering these questions help you understand the data set?
- How can this understanding help you predict expected levels in the future?
- What is one example of an unknown that can affect the actual outcome and render the model obsolete, even with the best model and confidence?
- Why is it important to evaluate and adjust analytical models on an ongoing basis?
Part 3: Research Paper
Write a 5–8 page research paper using a minimum of 3 references. Citations and references must be formatted using current edition APA style and format.
In your paper:
- Explain how to ensure the data you are using in your regression analysis is most relevant and accurate.
- Explain what conditions can cause bias within a regression analysis analytical model.
- Explain the importance of dependent and independent variables in processing raw data into useful and understandable information.
- Describe how regression analysis can help decision makers make better decisions.
- Written communication: Paper should exhibit proficiency in writing and critical thinking as expected of a business professional and be free of spelling and grammatical errors.
- Â‹Font and font size: Times New Roman, 12 points, double spaced.