Question

Find at least two examples of the relationship in business (or appropriate to you major) data and explain whether the relations there should be linear or non-linear. At least one of the examples must have more than one input variable. And if the relationship is nonlinear, explain the nature of the relationship (what is underlying reason for the relationship); and what shape of the regression curve may be the best fit.

Illustrate your examples with scatter plots (if you use one input variables) or other appropriate visualization techniques for relations with more than one input variables. No calculation of the regression is needed, but you encourage to sketch the regression line or curve manually.

Answer 1

example 1. Let's take an example that we wants to know that in which factors our sales is dependent on.

like there are more factors on which sales of a product is dependent upon.

for examples sales can be dependent on Price, marketing activities, distribution, competitor's price, competitor's distribution, promotions etc.

so here our sales is dependent variable and the factors mentioned above are independent.

here we can use multiple regression.

example 2. Let's take an example of an Adolescent's BMI .

We wants to know that on what factors our BMI is dependent on.

Our factors or Dependent variable in this case could be like : Diet intake, age, weight, height, mother's education etc.