Explain in your own words how the named concepts can contribute to profitability in a company. You are required to include original worked examples to illustrate your explanations. Correlation and regression Forecasting and Linear programming
Correlation analysis is applied in quantifying the association between two continuous variables hence can be used to show a comparison on which is the best method a company can use to make more profits while regression analysis refers to assessing the relationship between the outcome variable and one or more variables
Linear programming is a simple technique where complex relationships are depicted through linear functions then optimum points are found. This can be used in a company to detect when the sells of a company are more and what was done to achieve more sells hence making the company to be profitable.
Forecasting on the other hand is the process of making predictions of the future based on past and present data and analysis of trends. Through proper analysis of data, forecasting can be used to make decisions in a company that will make it more profitable