Question

What are the pros and cons of regression analysis?

Answer 1

PROS-

1. It is very easy to understand and apply

2. It is very helpful in forecasting the demand or the future of any business.

3.Help in correcting the errors in management or in any field. For example, let us suppose that if a person says that opening a bicycle shop for long hours will increase sales but after regression, it is found that it actually increases operating cost but not sales.

CONS-

1. It gives data for quantitative analysis mainly but not for qualitative like honesty, goodwill etc.

2. It is generally limited to the linear relationship.

3.