Question

if determining significant variables for profit, how do i determine which are significant and which arent? These are the options.

store

Sales

Profit

MTenure

CTenure

Pop

Comp

Visibility

PedCount

Res

Hours24

CrewSkill

MgrSkill

ServQual

Answer 1

For determining the profit, we need to consider certain factors such as sales, store, etc.

We can apply the linear regression model in the case of profit vs other variables. We can determine the significant variables by calculating the correlation coefficient between them.

The correlation coefficient tells about the linear relationship between any two variables.

The variables with the good correlation coefficient can be termed as significant, others can be termed as insignificant.