Linear Regression Model for Business Strategy
A Case Study of SMARTFOOD Company
These authors contributed equally.
- DOI
- 10.2991/aebmr.k.220307.273How to use a DOI?
- Keywords
- sale forecast; price; linear regression; interaction; business strategy
- Abstract
This article is a case study that illustrates how a linear regression model can be implied in business strategy to find the relationship between each variable and advise price setting and revenue prediction. With the fast development of big data, a business can get a more thorough data set, so experiment in the real world is more reliable. The challenge is to clean, organize and detect wrong data. This paper aims to use the existing statistic modeling methods to make a business strategy for a company based on a relatively small data frame. R studio is used for all statistical calculations. This paper also examines the interaction effects for the centered and uncentered data set. The result of this study shows that price is negatively correlated to sales and advertising fees, and stores have a positive correlation. It also shows that centering makes a great difference in illuminating the collinearity of interaction terms. Finally, this article analyzes the estimation made by the marketing director and gives suggestions on business strategy in the end.
- Copyright
- © 2022 The Authors. Published by Atlantis Press International B.V.
- Open Access
- This is an open access article under the CC BY-NC license.
Cite this article
TY - CONF AU - Keyi Chen AU - Liyao Dong AU - Linxinyi Wang PY - 2022 DA - 2022/03/26 TI - Linear Regression Model for Business Strategy BT - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022) PB - Atlantis Press SP - 1670 EP - 1677 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.220307.273 DO - 10.2991/aebmr.k.220307.273 ID - Chen2022 ER -