Database Marketing Strategy

1. Compare the use of simple selects versus regression analysis for choosing the customers on the house file most likely to respond in a certain way to an offer.

2. What is the basic mathematical concept behind simple linear regression?

3. What is extrapolation and why should it be used with caution?

4. Give an example of a potential linear relationship that a direct marketer may examine and attempt to estimate.

5. What is the coefficient of determination and how is it used in model building?

6. Describe the scatter plots for a low R2 and a high R2 relationship

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