Understanding Business Drivers and Improving Business Forecasts

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Understanding Business Drivers and Improving Business Forecasts MGMT600-1204B-03 Phase 4 IP
Melinda Stokes
Colorado Technical University Online
Professor: Rufino Prensa-Feliz
Monday, December 17th, 2012

In order for WidgeCorp or any other company to be effective in business, it is necessary for them to align their capabilities, resources, as well as material to the projected requirement of the goods they offer. Therefore, businesses regularly employ correlation in forecasting the probable consumer requirement for their goods or services (Task List: MGMT600-1204B-03 : Applied Managerial Decision-Making, 2012). Correlation is a numerical process that can indicate if and how powerfully two or more variables are connected. With correlation as with other statistical approaches is only appropriate for quantifiable or numerical data where figures are meaningful, typically measures of some type. It is unable to be utilized for just categorical information, such as sexual category, products bought, or color (Correlation, 2012). Frequently, companies utilize correlation with the intention of uncovering the level at which two or more computations concerning a comparable group of elements have a tendency of changing together, for instance as with consumer demand in regards to products offered (Lanthier, 2002). There are two directions that correlation can follow are positive or negative. When the correlation is positive as the value of one of the variables rise, the values of the second variable does also. On the other hand, if it is negative as the value of one of the variables rise, the value of the second variable falls (Lanthier, 2002). Correlation gauges the strength and direction of the association the not connection between variables understudy. Correlation assumes a linear relationship in which values range from negative one to positive one (Task List: MGMT600-1204B-03 : Applied Managerial Decision-Making, 2012). The values of correlation between the...
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