Week 7 discussion – improving multiple regression models
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:
- 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.
- What variables should be excluded from the model?
- What variables would you want included in the model?
- Overall, are you satisfied with the presented predictions? Why or why not?