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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 distinct positive relationship, but it is heavily influenced by a single outlier. Most points follow a linear trend.

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)

plot(sales ~ radio, 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 strong positive non linear relationship. As TV advertising spend increases sales consistently increase but the curve shows marginal returns, Sales grow quickly at lower and spending levels and begin to taper off as spend becomes very high.

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

Yes, there is a strong positive linear relationship. Higher radio advertising spend generally leads to higher sales, but the data shows moderate variability which shows moderate to strong variability.

Question 4: Explain one of the functions you learned in your own words.

I learned that plot () generates a scatter plot mapping the relationship between two variables, where the variable before the ~ goes on the y axis and the variable goes on the x axis.

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