Business Case Studies, Quantitative Methods Case Study, Kamal Automobile

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Quantitative Methods Case Study

Case Title:

Zeon Auto Research Inc.

Publication Year : 2013

Authors: Prof L Shridharan, R Muthukumar

Industry: -

Region: Suziland

Case Code: QM0035

Teaching Note: Available

Structured Assignment: Not Available


A regression model explains the relationship between a dependent variable and a number of independent (explanatory) variables. Generally, we take independent variables to be quantitative. What if some of them are qualitative / category variables? Can we still include them as independent variables?

In the first instance, this case is about understanding the use of quantitative variables in Regression Analysis. In the process, the concept of multi-collinearity and autocorrelation are dealt with. This is followed by the use of qualitative variables in the Regression Model. The process of representing qualitative variables as dummy variables in the regression model is dealt with.

Pedagogical Objectives:

  • To understand the use of qualitative variables in Regression Analysis and how to represent them as dummy variables in the regression model.

Keywords : Quantitative Methods, Suziland, Multiple Regression, Multi-collinearity, Analysis of Variable , Dependent Variable , Independent Variable, Decision making, Dilemma, Business Statistics


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