What is the purpose of using regression analysis? How may it be used to formulate strategies? Provide examples related to strategy formulation and implemenation.
How is regression analysis used in forecasting? Provide examples.
Regression analysis helps us understand how the typical value of the dependent variable changes when any one of the independent variables is varied, while the other independent variables are held fixed. Regression analysis may be used to formulate strategies because it allows us to predict values based on the existing pattern (and without regressions, these patterns would just be a bunch of random numbers).
Consider this example; ...
The solution explains the purpose of regression analysis in forming strategies and forecasting (econometrics) in 293 words.