Scribd
Upload
265 views5 pages

Assignment - 3 - Alt - Lab 5.6 SS

Uploaded by

varinder01219992
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
265 views5 pages

Assignment - 3 - Alt - Lab 5.6 SS

Uploaded by

varinder01219992
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 5

Varinder Kumar

Varinder6870@gmail.com
MBA (TI&E) Sem-1 May 2024

Forecasting Product Demand Using Regression– ASSIGHNMENT #3


Alt_Lab 5.6 Excel IBU – 09 June 2024

Alt_Lab 5.6 Excel Solution


Forecasting Product Demand Using Regression
Analyze the Data:

Analyze Task 1: Evaluate Potential Predictors of Monthly Product Demand

Three predictors (variables) of the monthly product demand for hiking boots will
be examined. The following three independent variables are:

1. GDP (Gross Domestic Product): Monthly product demand will increase in


proportion to economic improvement (there is a positive correlation between
GDP and monthly product demand).

2. Temperature (weather)

3. Holiday Season: In this case, November and December are regarded as holiday
months.
Analyze Task 2: Prepare data for Analysis
We need to create the Holiday Variable for analysis.
Take 0 for non-holidays month (i: e from January to October)
Take 1 for holiday month (November & December)

Analyze Task 2: Analyze the Data using Regression analysis


Alternate Lab 5.6 Excel Assessment

Questions Answer
What is the data value for the holiday variable in January
Assessment 1 2022? 0

Monthly Product
Assessment 2 What is the dependent variable in this regression? Demand
According to the regression results, a one-point increase in
GDP is associated with an increase in product demand by how
Assessment 3 many units (round to two digits)? 4.51
What is the adjusted R-squared for our regression model
Assessment 4 predicting product demand? 0.59
According to the regression results, the Holiday months
(where Holiday equals 1) are associated with how big of an
increase in product demand by how many units (round to two
Assessment 5 digits)? 12.58
What is the data value for the holiday variable in December
Assessment 6 2022? 1
What is the data value for the holiday variable in October
Assessment 7 2022? 0
What is the data value for the holiday variable in November
Assessment 8 2022? 1
Given regression results, which independent variable is not a
significant predictor (with a p-value greater than 0.05) of
Assessment 9 product demand? Weather
GDP (gross domestic
product) represents one
of the independent
variables (Predictor) in
Assessment 10 What is GDP in the regression? the regression.
Alternate Lab 5.6 Excel Analysis Questions

1. Why might weather help explain product demand?


Even though an independent variable in a regression analysis may not be statistically significant
—that is, even though its coefficient's p-value is higher than the selected significance level,
which is typically 0.05—it can still offer insightful information and advance knowledge of the
relationship between the independent and dependent variables. How to do it is as follows:

1. Interpretation of Coefficients: Although non-significant variables do not have


statistically significant impacts on the dependent variable, their coefficients may
nevertheless offer important information regarding the direction and strength of such
effects. Knowing the relationship's direction can help with future study or model
improvement by providing insights into the underlying dynamics of the data.
2. Theoretical Relevance: A variable may have theoretical relevance to the phenomenon
being studied even if it does not show statistical significance in a given regression
model. Even if their impacts are not statistically significant in the current research,
including theoretically relevant factors enables a more thorough examination of the
interactions between variables.
3. Subgroup Analysis: Variables may occasionally show significant effects in particular
subgroups or under particular circumstances, but they may not be significant in the
sample as a whole. In-depth associations between variables that might not be clear from
the main regression results alone might be found by examining interactions or subgroup
analysis.
4. Control Variable: To take into consideration any confounding variables or bias from
missing variables, non-significant variables can be used as controls. Researchers can
more effectively isolate the effects of various independent factors on the dependent
variable by including these variables in the regression model, which increases the
accuracy and dependability of the model.
5. Robustness tests: Researchers can perform robustness tests to evaluate the stability
and robustness of the results by including non-significant variables in regression models.
Through an analysis of the effects of introducing or eliminating these variables on the
coefficients and general fit of the model, researchers may assess the validity of their
results and pinpoint possible causes of bias or inconsistency.

All things considered, non-significant variables can nevertheless provide insightful information,
strengthen model specification, and improve the overall interpretability and robustness of
regression studies even though they do not directly contribute to explaining the variance in the
dependent variable.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy