Business Analytics Exam: Regression Model, Significance Test, Decision Making Strategies

Exam BUSINESS
ANALYTICS

Table of Contents
Question 2........................................................................................................................................3
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3....................................................................................................................................................3
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5....................................................................................................................................................4
Question 5........................................................................................................................................4
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2....................................................................................................................................................5
REFERENCES................................................................................................................................1

Question 2
1.
The dependent and independent variable are as follows:
Dependent variable means the variables or factors that basically depends upon the other
factors that are measured. It is expected that this variable are changes as a result of manipulation
of the independent variable.
Independent variable means the factors which basically stands alone and does not
change as per the change in the other factors. It represents the cause and reason of the outcome
because independent variable directly causes a change in dependent variable (Reggiani and
Schiaffino, 2020).
For example, in the given question the dependent variable is percentage of ticket sold while on
the other hand, the independent variable is expenditure on the different marketing platform.
2.
Interpretation of R2
R square is a statistical measure that represent the proportion of variance in the dependent
variable which is explained by the independent variable in the regression model. The result of R2
= 0.94152 indicate 94% of the change in the dependent variable is explained by the independent
variable. In the simple term, the r square means that 80% of the variation in the output variable is
explained by the input variables (Rheem and Oh, 2019).
3.
The purpose and reason behind why the significance test have been undertaken is such
that this test provides the evidence to reject the null hypothesis. If the evidence are strong enough
that the null hypothesis get reject, then in that case the alternative hypothesis automatically get
accepted.
P-value is basically a statistical test which is used in order to measure and determine the
probability of extreme results of the statistical hypothesis test. When p-value result is zero, then
its has no effect while when it is less than 0.05 than it means that null hypothesis can be rejected
(Shrestha, 2019).