Week 7 discussion – improving multiple regression models


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As the Sales Director of a local cosmetics brand that is targeting to expand its customer share, you are preparing a major sales initiative and you need to match the key roles with the right people. You ask the Business Analyst in your company to develop a model that predicts the number of sales made and she presents to you the following regression model:

Analyze critically the model by addressing these questions and explaining your rationale on each:

  1. Are there any issues or numbers that draw your attention? (Hint: look at the R-statistics, sample size, p-values, overall fit of the model). If so, identify and list them.
  2. What variables should be excluded from the model?
  3. What variables would you want included in the model?
  4. Overall, are you satisfied with the presented predictions? Why or why not?

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