Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)

Linear Regression Model for Business Strategy

A Case Study of SMARTFOOD Company

Authors
Keyi Chen1, Liyao Dong2, Linxinyi Wang3, *
1Management School, Lancaster University, Lancaster University, Lancaster, UK.
2SEM, Beijing University of Technology, Beijing, China.
3Mathematics Department, University of Nottingham, Nottingham, UK.

These authors contributed equally.

*Corresponding author Email: shylw3@nottingham.ac.uk
Corresponding Author
Linxinyi Wang
Available Online 26 March 2022.
DOI
10.2991/aebmr.k.220307.273How to use a DOI?
Keywords
sale forecast; price; linear regression; interaction; business strategy
Abstract

This article is a case study that illustrates how a linear regression model can be implied in business strategy to find the relationship between each variable and advise price setting and revenue prediction. With the fast development of big data, a business can get a more thorough data set, so experiment in the real world is more reliable. The challenge is to clean, organize and detect wrong data. This paper aims to use the existing statistic modeling methods to make a business strategy for a company based on a relatively small data frame. R studio is used for all statistical calculations. This paper also examines the interaction effects for the centered and uncentered data set. The result of this study shows that price is negatively correlated to sales and advertising fees, and stores have a positive correlation. It also shows that centering makes a great difference in illuminating the collinearity of interaction terms. Finally, this article analyzes the estimation made by the marketing director and gives suggestions on business strategy in the end.

Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
26 March 2022
ISBN
978-94-6239-554-1
ISSN
2352-5428
DOI
10.2991/aebmr.k.220307.273How to use a DOI?
Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Keyi Chen
AU  - Liyao Dong
AU  - Linxinyi Wang
PY  - 2022
DA  - 2022/03/26
TI  - Linear Regression Model for Business Strategy
BT  - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
PB  - Atlantis Press
SP  - 1670
EP  - 1677
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220307.273
DO  - 10.2991/aebmr.k.220307.273
ID  - Chen2022
ER  -