Question

(ii) Imagine you were shown prior student feedback on the course and one comment was “I am doing Business major X, why do I have to do a statistics course? It is not relevant”. Unfortunately, you do not know which major, X the student was referring to. Select the number of Business Majors at RMIT equal to the number of people in your group and illustrate an example of a simple or multiple regression model relevant to each of the selected majors. Explain and interpret the relevance of the regression model to the discipline major.

No data- just a model. Decide on a discipline/major -then think of a dependent variable relevant to that discipline. Then think of a set of variables that are theoretically determine your Y variable. That gives you your multiple regression model.

Answer 1

The decided major could be Marketing.

The dependent variable would be Revenue.

The independent variables will be the amount spend on advertising, the number of clicks on the ad, type of display of the ad, impressions, transactions, click-through rate, and conversion rate.

Hence, the model can be written as:

Revenue = Intercept + Beta1*amount spend on advertising + Beta2*number of clicks on the ad + Beta3*type of display of the ad + Beta4*impressions + Beta5*transactions + Beta6*click through rate + Beta7*conversion rate

Note: If you have more majors then the model will be created in the same way.

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