Application of Linear Regression Analysis in Predicting the Index of An Electronic Store

This paper illustrates how linear regression analysis can be used to establish a suitable mathematical model for the return on investment (ROI) of the store from June to December in 2020. What’s more, preliminary analysis of the known data will be explained. Then, the ROI of the store from January to May is estimated by using the model, and the limitations and uncertainties of using the analytical method will be stated by reflecting the process of the analysis. The paper aims to prove the feasibility and rationality of using the method of linear regression analysis to build a model for the prediction of future figures and show exactly how linear regression analysis can be exactly applied in real-world cases. Also, the result shows that the method is effective and reasonable, while there are still errors and uncertainties of the estimation, which makes merchants must consider about all factors when making decisions.