Reply to discussion board post. 200ish words – assignmentcollections.com
Business Finance Assignment Collections – assignmentcollections.com
Reply to bold reply see below:
Initial post question:
Provide an example based on your professional experience of a situation in which using a multiple regression model or nonlinear regression model may have helped your organization make a better decision.
Re:Topic 4 DQ 1
I worked as the club manager in Germany when I was stationed there in the military. When I took over, the club was making an insane profit. The previous club manager had been allowed to do almost anything he wanted since he was running a very successful operation. Shortly after I took over, I found out that a large portion of our sales were thanks to a rather lenient customs policy. The main bulk of our funds were from the German soldiers at our base purchasing cigarettes from us at a fraction of the cost on the economy.
Not long after I took over, the customs began cracking down, which prevented us from selling to the locals. Before long, the huge surplus we had was gone. Had our leadership run a basic multiple regression, they could have learned where our money was coming from and taken steps to improve the other cash generating programs. Instead, I was left with no money for operation and a lot of broken programs to fix. It took a significant amount of time to get the club operating the way it should have.
“To determine which of the independent variables in a multiple regression model is significant, a significance test on the coefficient for each variable is performed” (Render et al., 2015, p. 130). If we had run the multiple regression on the areas of our club’s sales, we would have seen a very significant R², while the other areas would have been extremely low. That would have given us the opportunity to improve the operation while we still had a steady influx of cash from the sale of the cigarettes.
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