Question

Explain the importance of correlation and regression in managerial decision making

Answer 1

1.correlation is used in business to show association between the two variables-an  independant and dependant variable. For example:  How income is associated with expenditure on food items etc.

2.Regression analysis is basically a predictive tool with the help to regression analysis one can predictive change in the dependant variable with the help of  known independent variable. Y= a+ bx where y is dependant variable while x is independent variable.