You are working with a company selling buildingmaterial to builders. You predict the quarterly purchases of customers based ontheir current purchases by using a linear regression model. These...

You are working with a company selling building material to builders. You predict the quarterly
purchases of customers based on their current purchases by using a linear regression model. These
predictions, however, are not very accurate. Discuss at least three reasons why these predictions may not
be accurate and offer three ways in which you can increase the likelihood of accurately predicting your
customers’ purchases.
Ans:
In this case, we predict the quarterly purchases made by customers based on their current purchases by
using a linear regression model. However, these predictions may not be accurate. We will discuss some of
the reasons as to why the prediction is not very accurate.
Reasons
1) If the regression model gives the curvilinear relationship between the dependent and the
independent variables for the data, then...