Advanced Multivariate Techniques In Business

By Author: poddarbschool
Total Articles: 211
Comment this article

Whenever you have a problem with more than two variables to sort out, multivariate analysis can offer you an answer. It's used in a variety of fields that require the examination of statistical data, including economics, psychology and, as you may have guessed, business. The best business School in Rajasthan like Poddar Business School has new age electives like Business Analytics as specializations in its PGDM course.
Advantages of Multi-variate Analysis
Without multivariate analysis, you are limited to testing only two variables at a time. A classic example of this is A/B testing, which is used in tweaking ads for the best conversion rates. However, comparing only two variables at a time isn't going to help you when you're facing a variety of different variables, such as categorizing customers, examining trends in your market, determining the best design or packaging for products or making sense of market research when people have been asked a variety of questions.
Multiple Regression Analysis
Multiple regression, or multiple linear regression, is the most widely used multivariate technique and is often ...
... used in forecasting. If you've ever done linear regression in Excel using a scatter plot chart, then you understand that Excel adds a line to the chart to predict what will happen based on changes in a single independent variable. That is a regression line showing the relationship between the variables. PGDM program at Poddar Business School, you can work on live projects, which would be helpful for them in future.
Logistic Regression Analysis
Also known as choice models, logistic regression is much the same as multiple regression in that you can analyze the relationship of different independent variables. However, it is only used when you are looking for a binary outcome, like "yes or no" or "Brand A or Brand B". If you want to see the relationship between sales volume or sales revenue to a set of variables, you can use multiple regression.
Discriminant Function Analysis
Discriminant function analysis is used to classify observations or people into different groups. This analysis should give you different combinations of variables that make one person more likely to become a major customer than another.
Multivariate Analysis of Variance
Multivariate analysis of variance (MANOVA) is used to analyze the effect of one or more independent variables on two or more dependent variables. While its cousin, analysis of variance (ANOVA), shows the differences between groups, MANOVA shows the relationship of several dependent variables across two or more groups.
Factor Analysis
Sometimes there are too many variables involved in a decision, and it helps to reduce them to a smaller group. In this case, you may be able to use factor analysis to make the analysis a bit easier. Factor analysis doesn't give you the answers you need because it doesn't use a dependent variable.
Poddar Business School trains its PGDM program students accordingly who have selected Business Analytics as an elective.