Week 7 – R Introduction

Question 1

What is R: 3D visualization?

Answer 1

• R has the ability to generate histograms, boxplots, scatterplots, and XY plots similar to Excel.
• Graphs from R can differentiate by brand, product category, or other variable.
• Gives greater insight into patterns
• R can perform more sophisticated 3-D graphing than Excel.
○ Plot the planes—helps find patterns
○ Rotate the graphs—offers different senses of parameters.
• 3-D allows you to see regression lines and planes to identify patterns.

Question 2

What is ANOVA?

Answer 2

• Analysis of variance (ANOVA) is used to compare the averages for different categories or brands.
• ANOVA calculates the average of each item, combines with standard deviation/variance, and determines if they are statistically different from one another.

Question 3

What are Dummy variables?

Answer 3

Dummy variables change the intercept of some items to be different from others.

Question 4

What are Moderating effects?

Answer 4

• Moderating effect: An interaction of variables that leverage each other
• The moderating effect acts as a catalyst to accelerate the effect of certain variables.