As large U.S. companies flattened their management hierarchies during the 1990s, many of the middle managers who were laid off gave up on “corporate life” and started their own companies or bought franchise operations. This talent migration, along with the fact that most new jobs in the United States were being created by small businesses, cast entrepreneurism into the national spotlight. The business listed in the table were among the fastest growing in the franchise industry. instuction: Propose a regression model that will enable you to compare the mean number of new franchises for the four types of franchises (food, cleaning, accounting/consulting, hospitality) Provide a clear definition for the variables (dependent and independents) being used in the model.
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
As large U.S. companies flattened their management hierarchies during the 1990s, many of the middle managers who were laid off gave up on “corporate life” and started their own companies or bought franchise operations. This talent migration, along with the fact that most new jobs in the United States were being created by small businesses, cast entrepreneurism into the national spotlight. The business listed in the table were among the fastest growing in the franchise industry.
instuction:
- Propose a regression model that will enable you to compare the mean number of new franchises for the four types of franchises (food, cleaning, accounting/consulting, hospitality)
- Provide a clear definition for the variables (dependent and independents) being used in the model.
Step by step
Solved in 2 steps with 6 images
