T1_ Limitations and Recommendations

Linear Regression Analysis Summary

• We have completed our linear regression analysis and interpreted the results.

Key Variables

• Measured Variable: Click Through Rating (X)

• Dependent Variable: Weekly Sales (Y)

• A significant relationship exists between click through rating and weekly sales.

Recommendation on Predicting Sales

• Recommendation: Use click through rating (X) to predict weekly sales (Y).

• Justification:

  • The recommendation is based on the significance of the relationship measured by the p-value.

  • Our p-value was less than 0.05, indicating a statistically significant relationship.

Caution and Limitations

• Although we recommend using click through rating to predict weekly sales, we must acknowledge the limitations of our analysis:

  • R-squared Value: 37%

    • This indicates that click through rating only accounts for 37% of the variance in weekly sales.

    • There remains over 60% of the variance unaccounted for, necessitating further investigation into other influencing variables.

  • **Potential Impacting Factors on Weekly Sales:

    • Location: Different locations may affect sales.

    • Competitors: The number of competitors present during sales.

Conclusion

• In conclusion, while we recommend using click through rating to predict weekly sales based on our analysis, we must consider additional factors to ensure more accurate predictions in the future.