Regression Analysis Example

Regression Analysis
Knowledge Center

 

Next Topic

Regression Analysis > Forum > Regression Analysis Example

Regression Analysis Example
Vanessa Carter, Student (MBA), United States, Member
Let’s say the demand relationship for apples is: Q = 120 – 1.8 P Can you explain exactly what this means? Explain how, as a business manager, you would use this information I am having trouble with this question, can anybody help me understand this question thanks. (...) Read more? Sign up for free
 

Please register now to read all responses and to join this discussion yourself. It's easy and 100% free.

    Log in

 
Regression Analysis Example
Jaap de Jonge, Management Consultant, Netherlands
Hi Vanessa, let's suppose this formula is for daily demand of apples and P in the formula represents pears.
This formula says that each day there is a demand of apples of 120, minus the demand of peers times 1.8.
For example if people want to buy 50 pears on a particular day, then the remaining demand for apples would be 120 - 1.8 * 50 = 120 - 90 = 30.
What could a manager do with this fomula? Well a number of things. Suppose (s)he knows that for one day there will be a very high demand for pears, say 100, he will now that he will be unable to sell any apples, so best not to build any stock of apples for that day.
In general it would be good for the manager to know / measure P, because then he also knows Q.
Note that if his demand formula is correct, there are no other variables (influences) on the demand for apples than P. So the manager should not spend any effort on any other things than P.
Hope this helps.
 

 
Regression
Vanessa Carter, Student (MBA), United States, Member
(...)
 

         
Special Interest Group Leader

Interested? Sign up for free.


Regression Analysis
Summary
Forum
Best Practices


    Regression Analysis
    Knowledge Center

     

    Next Topic



    About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
    © 2019 12manage - The Executive Fast Track. V15.2 - Last updated: 9-12-2019. All names ™ of their owners.