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Regression and Correlation

Differentiate between correlation and regression in the context of business. Describe the circumstances under which a marketing manager would benefit more from correlation than from regression. Also, describe the circumstances under which the marketing manager would benefit more from regression than from correlation.

In terms of the type of information, what is the difference between correlation and the tests of differences (t-test and chi-square test)?

Justify your answers with examples and reasoning.

Regression is one of the most widely used statistical techniques. In business, it is often used within the realm of what is known as predictive analytics—estimating the use of statistical techniques to estimate the likelihood or magnitude of future outcomes of interest. However, regression is also an explanatory tool because the regression model explains the variability in dependent variables with the help of one or more independent variables.

From the marketing management perspective, discuss regression as an explanatory and a predictive tool. What are the major differences between an explanatory and a predictive tool? In terms of the goodness of fit, what is the most important indicator of regression as an explanatory tool and as a predictive tool?

Justify your answers with examples and reasoning


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