Describe each step in the quantitative analysis approach in

Describe each step in the quantitative analysis approach (in your own words). Identifying the problem, developing a model, acquiring input data, developing a solution, testing the solution, analyzing results, and implementation.

Please select any quantitative problem you wish as it relates to your current employment. If not currently employed, use any of your previous employments.

Solution

I use regression in my day to day work flow. Here\' a step-step to view of what I do:

Problem Identification: Excalty what parameters do you want to predict. In our case it is a countinous dependent variable. There are thousand things which can be modelled but one must know what exactly do you want to predict.

Also, one must know if it\' a classification or prediction problem. If its a classification problem, then you musn\'t be conducting linear regression model on your data.

Developing a model/solution:

1. Collect data

2. Arrange the data

3. Treat the data - data is treated for missing values, outliers for each of the variables.

4. Upon treating of each variable, perform step wise regression. Use business logic and certain rules to decide on this. For example you may want to remove collinear variables. You may also want to remove variables which aren\'t significant. Removal of variables on VIF is another thing which you can perform. R2 is definitely a solid criterion to retain/ditch an independent variable.

5. You have built your model on training data now.

Testing a solution/Analyzing results:

Once you are done with developing the model, you can test the model on the data you have set apart for testing, also known as the testing data. Measure the residual, homoscedascity/hetroscedasticity etc. and predictive on the testing data. If its good, then you are done here, you may deploy the regression equation for commerical procedure.

Implementation:

The business intelligence team here provides the algorithic equation ( linear regression) to the development team. They develop the logic in C++. The app in-houses the model coded in C++ and runs it on every insstalled device.