Question

Identify a situation at work/office that requires a decision based on an analysis of historical data. Describe the situation and need for study. Identify the dependent and independent variables to be studied and prepare an outline of the methodology for the study to be presented to your supervisor for approval.

Answer 1

SITUATION: You want to know what parameter effects your sales to what extent so that you can optimize your spending on that parameter. For this historical data of the parameter and the sales is used

Dependent variables: sales

independent variables: parameters such as advertisement expenses, distribution expenses, employee expenses, and R and D expenses

Outline for the methodology:

First data for all these variables must be taken for the past years

and by conducting linear regression or non-linear regression, you understand the extent the variables affect the sales

and you understand how the sales figures change with the change in the independent variables

now, you produce an optimum combination of the values for your independent variables to maximize your sales.