Question

In a typical regression study, explore occasions (imagine situations) when the researcher must resort to gut feelings or live with the second best.

Answer 1

Suppose in a case where we have to predict the sale of a particular grocery store and there are many independent variables based on which we have to predict y , which is the sale of that store in a week .

Before building a simple linear regression model , we first had to explore the data , while doing that , it may have been noticed that the "type of commodity" does not have much effect on the sales of the store . But it is a fact that the sale of an overall store depends on the types of the commodity it sells . Hence in this case , we have to take into account the details of the variable " type of commodity" .

This may be referred as an example of gut feeling , while choosing the independent variables for predicting an independent variable.