Regression analysis is a technique for quantitatively identifying variables that could have

an impact. It is important for both small and large businesses because it can help them identify

the factors that matter most, the ones they can disregard, and the relationships between those

factors. Since Big D Incorporated is almost through with its outdoor sporting goods company’s

portfolio of recommendations, there is a need to present the variables that I will use in the path I

am recommending. This discussion board presents the variables: dependent and independent

variables that I will utilize in the path I am recommending. It also suggests one of the regression

models that will help me determine whether my recommendation of expanding to the new

market in Chicago as I have consistently stated in exercises 1, 2, and 3 is appropriate. To help

come up with clear variables, the discussion board considers both the social and economic

effects of coronavirus.

In research by Agravante (2018), a variable refers to a measurable property that normally

varies or changes during an experiment, whether making a comparison of findings across

numerous persons, or even several groups. Considering the coronavirus brought some social and

economic issues that negatively impacted the world’s economy at large, Chicago being one of

them, I will consider income, consumer age, and socio-economic background to be the

dependent variables for the outdoor sporting goods company, while target market to be the

independent variable.

As provided by Frank & Schoen (2020), Illinois, where Chicago is situated was not the

worst hit by the coronavirus meaning it did not see the most job losses as a result of coronavirus.

This, therefore, means that most people were not rendered jobless and have some income thus

making Chicago a suitable market for the Outdoor Sporting goods company. With the target as

an independent variable, it will be quite easy to know whether we should create a new market in
Chicago because all we will need to know is the relationship between the target market and the

new goods of Outdoor Sporting Goods Company. For instance, what are the target market’s age,

level of income, and socio-economic background?

In my view, linear regression is the most helpful regression model tool that I will use to

justify my recommendation. This is because it will clearly show the relationship or connection

that exists between the target market as my independent variable and age, income, and

socioeconomic background as my dependent variables. Furthermore, it is simple to interpret as it

is graphically shown using a straight line comprising a slope that defines how the change in a

given variable affects the other.

 References

Agravante, M. 2018. “What Is The Meaning Of Variables in Research”.

Sciencing.com.(https://sciencing.com/meaning-variables-research-61642 55.html, diakses

pada 7 Maret 2020).

Franck, T., & Schoen, J. (2020). This map shows which states are seeing the most job losses due

to the coronavirus. https://www.cnbc.com/2020/04/02/this-map-shows-states-are-seeing-

the-most-job-losses-due-to-the-virus.html