Business Application of Regression
Name
Institutional Affiliation

Regression is a mathematical tool used by statisticians to investigate the relationship that exists between variables. Regression also sheds light on the strength of the relationship between two variables. The following are examples of how regression is applied in business. 1. Regression is used to measure the extent to which a company’s profits can be affected in the event of an increase in profits. 2. Advertising is used to help sell the goods and services that a company produces. Regression helps the company’s staff understand how fast changes in advertising expenditure can affect their sales in general. 3. By using regression, a company can see how it stock prices are affected by a variable such as an increase or decrease in interest rates. 4. Using variables such as sales and other market factors, one can use regression to forecast the future demand of a company’s goods and services. 5. Regression can also help in finding out the consequences of changing the money supply on the current rate of inflation in a country. 6. Farming can be considered to be a business as well. Therefore, a farmer can use regression to find out how a change in the amount of rainfall will affect his crop yields. 7. In order to determine the salary of an employee, many factors have to be put in place. Regression can help in determining how the education of a person affects how much he or she will earn as a salary. 8. In the energy sector, one can use regression to find out what effect a change in oil prices will have on the cost of electricity. 9. In quality control, regression is used to find out the trend of customer complaints over a period of time. 10. Regression can be used to identify the relationship between mortality rates among the workforce and how much should be