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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?

Yes, there is a relationship between x and y. Based on the data, the relationship is positive and about linear. Both are increasing but not perfectly linear.

library(readr)
library(readr)
ad_sales <- read_csv('https://raw.githubusercontent.com/utjimmyx/regression/master/advertising.csv')
## 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.
## • `` -> `...1`
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 relationship between TV advertising and sales. As TV advertising spending increases, sales also tend to increase. The graph shows an upward pattern showing the increase in TV ads associate with higher sales.

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

###yes, there is a relationship between radio ads and sales. The scatter plot showe as radio ads increase, slaes will also increase. The relationship is not as strong as the tv ads and sales relationship.

###Question 4:Three things you learned from this tutorial ### 1. Visualization matters. Two datasets can have similar statistical summaries but look very different when plotted.

  1. Bivariate analysis helps identify relationships. It allows marketers to see whether one variable (like advertising spend) is related to another variable (like sales).

  2. Positive relationships inform strategy. When a clear positive linear relationship exists (such as TV advertising and sales), it provides evidence that increasing spending in that channel may increase revenue.

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