Marketing Analytics: Project 1: Non-Linear Modeling

Project Brief:

1) This project is to be done in groups.

2) Identify a firm from an appropriate database.
3) For this firm, identify a dependent variable for which we plan to create a Forecasting
Model.
4) Identify four variables which influence the dependent variable. Test out the dependency
statistically.
5) The variables should be such that adequate secondary data is available (Adequacy = 60
data points for each variable).
6) Break-up the data into:
a) Calibration Sample (40 data points): to create the Forecasting Model
b) Hold-out Sample (20 data points): to test out the Forecasting Model

Questions to be answered by the Analysis:

1. Build a linear regression model to forecast the dependent variable based on the four
causative variables. State the goodness of fit for the model.
2. Build a non-linear regression model to forecast the dependent variable based on the
four causative variables. State the goodness of fit for the model. Display this
graphically.
3. Test out the models using the Hold-out Sample.
4. Compare the two models for practical use. Justify your answer.

Submit the solution in the form of a report. Word limit: 1600 words (4 pages); Times New
Roman; Font 12; 1.5 spacing; double-aligned.

Submit to respective CRs by 4th October midnight.

CRs to forward folder to me by mail by 5th Oct 00:10 hours.

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