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Mathematics, 13.02.2020 05:09 cheychey1620

The Tasty Sub Shop Case:
A business entrepreneur uses simple linear regression analysis to predict the yearly revenue for a potential restaurant site on the basis of the number of residents living near the site. The entrepreneur then uses the prediction to assess the profitability of the potential restaurant site.
And
The QHIC Case:
The marketing department at Quality Home Improvement Center (QHIC) uses simple linear regression analysis to predict home upkeep expenditure on the basis of home value. Predictions of home upkeep expenditures are used to help determine which homes should be sent advertising brochures promoting QHIC’s products and services.

Discuss the difference in the type of prediction in both cases and provide rational of the reasons that these predictions were used.
The Pearson's Correlation Coefficient (r) or simply stated as the "Pearson's r". The Pearson's r is a statistical technique that illustrates the linear relationship between 2 variables. Each variable has an IV and DV measured at an interval level of measurement. For example, you want to examine the relationship between income and years of education or height and weight. You have to calculate each variables Z-score in order to determine the linear relationship.

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The Tasty Sub Shop Case:
A business entrepreneur uses simple linear regression analysis to pre...
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