Summary - Regression Analysis
Summary - Regression Analysis
Correlation and
Regression:
Explaining Association
and Causation
Marketing Research
Text and Cases
by
Rajendra Nargundkar
Application Areas: Correlation
Pre-conceived Approach
Dependent Variable
Independent Variables
and determine the values of a, b1, b2, b3, b4, b5, & b6.
Regression Output:
a (intercept) = -3.17298
b1 = .22685
b2 = .81938
b3 = 1.09104
b4 = -1.89270
b5 = -0.54925
b6 = 0.06594
These values of a, b1, b2, ..b6 can be substituted in
equation 1 above and we can write the equation
(rounding off all coefficients to 2 decimals), as
Given the levels of X1, X2, X3, X4, X5, and X6 for a
particular territory, we can use the regression model for
prediction of sales.
Before we do that, we have the option of redoing the
regression model so that the variables not statistically
significant are minimized or eliminated.
We can follow either the Forward Stepwise Regression
method, or the Backward Stepwise Regression method,
to try and eliminate the 'insignificant' variables from
the full regression model containing all six
independent variables.
Fig. 6