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Note: this analysis was performed using the open source software R and Rstudio.

Objective

The objective of this tutorial is to explain how bivariate analysis works.This analysis can be used by marketers to make decisions about their pricing strategies, advertising strategies, and promotion stratgies among others.

Bivariate analysis is one of the simplest forms of statistical analysis. It is generally used to find out if there is a relationship between two sets of values (or two variables). That said, it usually involves the variables X and Y (statisticshowto.com).

Dataset - We will be using two online datasets available in R for this tutorial

plot(y3 ~ x2, data = anscombe, pch = 16)
abline(lm(y3 ~ x3, anscombe), col = "grey20")

Question 1:is there a relationship between x and y? If so, what does the relationship look like?

There is a weak relationship between x and y. The data points are scattered, and the line doesn’t fit the points very well. This suggests a weak or unclear relationship.

library(readr)
library(readr)
ad_sales <- read_csv('https://raw.githubusercontent.com/utjimmyx/regression/master/advertising.csv')
## `curl` package not installed, falling back to using `url()`
## New names:
## Rows: 200 Columns: 6
## ── Column specification ────────────────────────────────────────────────────────
## Delimiter: ","
## dbl (6): ...1, X1, TV, radio, newspaper, sales
## 
## ℹ Use `spec()` to retrieve the full column specification for this data.
## ℹ Specify the column types or set `show_col_types = FALSE` to quiet this message.
plot(sales ~ TV, data = ad_sales)

Question 2:Is there a relationship between TV advertising and Sales? If so, what does the relationship look like?

Yes, there is a clear positive relationship. As TV advertising increases, sales also increase. The points form an upward trend.

Question 3:Can you plot the relationship between radio advertising and Sales? If so, what does the relationship look like?

Yes, we can plot it. The relationship is also positive, but it is a little more spread out than the TV plot. That means radio helps sales, but maybe not as strongly as TV.

Question 4:Three things you learned from this tutorial

I learned, Bivariate analysis helps us see relationships between two variables, graphs like scatterplots make it easy to visualize those relationships, and TV advertising has a stronger effect on sales than radio based on this data.

References

Bivariate Analysis Definition & Example https://www.statisticshowto.com/bivariate-analysis/#:~:text=Bivariate%20analysis%20means%20the%20analysis,the%20variables%20X%20and%20Y.

https://www.sciencedirect.com/topics/mathematics/bivariate-data