BIG D
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Big D Inc seeks to examine various variables for a marketing approach for its outdoor sporting products. The company uses a regression analysis technique to examine variables and predict the outcomes. The company is also considering the social and economic impacts of the Covid-19 pandemic in predicting a future outcome. The regression model will be utilized to determine the decision of the recommendation on whether to expand into a new market or not. The statistical technique is useful in finding trends and relationships between data. The model helps one derive an equation that is reliable in predicting future outcomes by comparing a set of dependent variables on the x-axis against an independent variable y. The dependent variables to be examined include customer age, gender, income, and customers’ interest.
Customer age and income will determine the volume of outdoor goods to be produced. The board of directors should analyze the past effect of products sold for different age groups. High demand for sporting products for a certain category of age indicates that there is a likelihood that there will be a higher demand in the future. However, the Coronavirus may have affected the number of young people interested in games to avoid contact. High income among the customer would mean high purchasing power. Therefore, the company will expand the market. However, due to the Coronavirus disease, customers are not likely to have much income, considering the negative impacts on the economy. The company should be cautious not to expand into the new market because there is a high probability of making loss caused by low income and few young people willing to participate in sporting activities (Statisticshowto.com, n.d.).
Customers’ interest and gender are the other two variables to be examined. Considering the social impact of the Coronavirus disease, few people will be interested in socializing through sports to avoid contact with one another and contracting the virus. In such a case, past data may be unreliable as they may not reflect the current condition’s true situation. Nevertheless, the board of directors should not be too pessimistic, considering individuals striving to keep fit to boost their immunity. Besides, there is hope for a flat curve as Coronavirus’s positive cases are reducing, and things are getting to normal, including games. Therefore, the company should expand the market because soon, there will be a high demand for sporting products. The gender variable has little effect on the trend, considering the male gender has always been more interested in games than the female gender. The board of directors can still rely on past data to predict the future where it should expand its market for more male products than for female products (U.S. Bureau of Labor Statistics, 2020).
Reference
Statisticshowto.com (n.d.). Regression analysis: Step by step articles, videos, simple definitions. Retrieved from https://www.statisticshowto.com/probability-and-statistics/regression-analysis/
U.S. Bureau of Labor Statistics. (2020). Unemployment rates for states, seasonally adjusted. Retrieved from https://www.bls.gov/web/laus/laumstrk.htm