Identify and briefly discuss two important concepts (Prediction and Regression/ Correlation or Regression) applicable to analytical methodology.
Ghauri and Gronhaug (2005) noted that explaining and predicting relationship between variables is important tasks in research. In business, a researcher may want to determine the relationship between the amount of money spent on advertisement and sales or market share of the company. In education, a researcher may be interested in determining the relationship between amount spent on training and development of teachers and their level of productivity. The results of these will be important inputs in making business- and education-related decisions.
Correlation analysis shows the strength and direction of association between two variables. The value of the correlation coefficient indicates the strength of association while the sign reflects the direction of association between the two variables. A correlation coefficient of +.80 to +1.00 indicates a strong positive correlation between two variables being analyzed. On the other hand, a -.20 to -.40 correlation coefficient indicates a very weak negative correlation between the two ...
Correlation analysis and regression analyses are described as they related to the business environment.