Big D Incorporated will be examining how multivariate techniques can serve the organization best and how they can be applied to its new client, the outdoor sporting goods customer. The Board of Directors has asked you to research and explain 3 major ways in which multivariate statistics are utilized in this scenario. In this case, be sure to justify your decision.
Research using the library and the Internet to find an example of how a real company has used each of the following multivariate techniques:
- Factor analysis
- Multidimensional scaling
- Cluster analysis
This can be considered a benchmark if you can justify how it could benefit Big D Incorporated.
Write a summary to upper management explaining the following:
- How can each multivariate technique be utilized in Big D Incorporated, and what purpose would each serve?
- Which technique is your preferred method, and how is your chosen multivariate technique different from the other two techniques?
- What will the Board of Directors learn from your selected technique and more importantly, how will it contribute to the overall decision-making process?Â
- Download the file Sample Data.
- Prepare a chart similar to the one in the downloaded file to indicate whether the correlation between variables A and B were found to be positive, negative, or minimal.
- Provide explanation and justification for your decisions.
In your own words, explain what it means if the correlation of 2 variables is positive, negative, or minimal (close to 0), and give an example of each.
- What do you deduce from the correlations? Explain if you believe these to be short or long-term objectives and outcomes.
- What are the implications for Big D Incorporated regarding its client in the outdoor sporting goods?
- What are the implications for the penetration into the indoor sporting goods market?
- Also, how can you use the correlation tools to identify the variables in the research toward the expansion into the indoor sporting goods market?Â