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totevent
2012 Apr 12
0
Can I use a simple linear regression in this situation
...for example:
StoreName | Tot Revenue | Tot Active Customers
Store A | 200,000 | 120
Store B | 230,000 | 129
Store C | 220,000 | 119
The sample data has about 65 stores in total. I don't know the average
transaction value or if a customer has transacted more then once.
> LineBestFit = lm(TotRevenues ~ TotActiveCustomers)
> plot(TotRevenues ~ TotActiveCustomers)
> abline(LineBestFit)
I've plotted the data and the line and I get a strong positive linear
pattern with a couple of outliers , nonetheless the plot shows that the more
active customers I've in a store the more revenues...