Chapter 46. Incorporating Qualitative Factors into Multiple Regression
How can I predict quarterly U.S. auto sales?
How can I predict U.S. presidential elections?
Is there an Excel function I can use to easily make forecasts from a multiple regression equation?
In our first example of multiple regression in Chapter 45, we forecast the monthly cost of plant operations by using the number of units of each product manufactured at the plant. Because we can quantify exactly the amount of a product produced at a plant, we can refer to the units produced of products A, B, and C as quantitative independent variables. In many situations, however, independent variables can’t be easily quantified. In this chapter, we’ll look at ways to incorporate qualitative ...