ECN 601 Selecting a complete set of independent variables is always an issue when using regression analysis to estimate demand
ECN 601 Selecting a complete set of independent variables is always an issue when using regression analysis to estimate demand
ECN 601 Selecting a complete set of independent variables is always an issue when using regression analysis to estimate demand
ECN 601 Grand Canyon Week 2 Discussion 1 (January 2016)
Selecting a complete set of independent variables is always an issue when using regression analysis to estimate demand. For example, analysts often use price and advertising to estimate quantity demanded. However, how do they know that these two variables were sufficient? How do we know that we didn’t omit other variables which would have had a significant impact on demand? How do we know that we didn’t include variables that were not needed? Explain how analysts would answer such questions.
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