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Benefit of Developing and Examining Models

a.) What benefit does a variable provide when developing and examining models?

b.) Explain the purpose of simple linear regression and scatter diagrams. Please provide a simple linear regression model and define each variable used.

c.) Describe multiple regression analysis and discuss potential uses for this model.

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a.) A variable is a value that can take different values depending on particular circumstances. As such a variable can take on many values as and when the situation dictates.

Since a variable is not static its changing nature can help the estimator determine the possible values of a function for different variable values. For example, assume that the total amount of gas used is a function of distance travelled and time taken. The total gas cost can be determined for many distances travelled i.e. 20, 30, 40 miles.

b.) A simple linear regression is a function that has a constant and variable portion. The ...

Solution Summary

The benefits of developing and examining models are determined. The expert describes multiple regression analysis and discusses the potential uses for the models.