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1. What is the relationship between independent and dependent variables with regard to correlation and regression analysis? How is regression analysis used in forecasting? Provide examples.

2. What is the purpose of using regression analysis? How might a regression analysis be used to formulate strategies? Provide examples related to strategy formulation and implementation.

3. What is a scatter diagram?

4. If you look at break-even calculations, scatter plots for estimating demand information, and trends in revenue. In each of these, you can simplify the analysis to a straight line. This is useful, but sometimes these data are more complex. They may be a curved line, or instead of there being only one item for the slope, such as with variable costs, there may be several factors involved in the estimate. Demand, for example, may be based on price, convenience, or quality. How does a linear regression allow you to better estimate trends, costs, and other factors in complex situations?

5. What is Multicolinearity?

6. Describe some warning signs of multicolinearity.

7. What is the analysis of variance (ANOVA)

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