Week 3 discussion
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.
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?
