Exponential regression of data close to one

In summary, the person has been using exponential regression to model sales for their work, and is confused about how to integrate it to predict sales for products with lower sales numbers. They initially thought there was a problem with their model, but it turned out to be a programming glitch that affected slow-selling products more.
  • #1
hddd123456789
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Hi,

I've been working on trying to model sales for my work and I'm really just modeling it using exponential regression, so I get the linear regression of the logarithm of the data and obtain the desired formula.

What I'm confused about is that if I integrate this to try to predict how many sales will be from now to some future point, it seems to work OK for products which have more sales (sale numbers are far from 1 for a given period of time) but not so well for products with poor sales (sales numbers that are either 0 or ~1 for a given period of time).

For the latter products the exponential model seems to predict that there are on average around 1 sale per unit of time, which when integrated ends up adding together a bunch of 1's for each period of time.

Am I misusing exponential regression or is this a limitation of its use?

Many thanks!
 
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  • #2
Hi !
I cannot fully understand what is the problem. can you post an example of data ?
 
  • #3
Thanks for the reply! But actually it turned out to be some sort of programming glitch. My first huge mistake was to not add in data points for time periods that had no sales. I realized this and wrote the code to add in zeroes for these, but when I was still getting expected values that were well over the actual ones, I thought maybe my model was screwed up.

Apparently the error affected slow selling products more because they tend to have more time periods with zero sales. But anyway, the code randomly started working as expected so no complaints.
 

What is exponential regression?

Exponential regression is a statistical method used to model and analyze data that follows an exponential pattern. It involves fitting an exponential function to a set of data points in order to find the best curve that represents the relationship between the variables.

Why is exponential regression useful?

Exponential regression is useful because it allows us to analyze and make predictions about data that has an exponential growth or decay pattern. This is common in many real-world scenarios, such as population growth, compound interest, and radioactive decay.

How is exponential regression different from linear regression?

The main difference between exponential and linear regression is the type of relationship being modeled. Linear regression is used when the data follows a linear pattern, while exponential regression is used when the data follows an exponential pattern. Additionally, the equation used to model the data is different for each type of regression.

What does it mean when the data is "close to one" in exponential regression?

When the data is close to one in exponential regression, it means that the values of the independent variable are close to 1, and therefore the values of the dependent variable are also close to 1. This indicates a strong correlation between the two variables and suggests that an exponential function is a good fit for the data.

How can I interpret the results of an exponential regression?

The results of an exponential regression can be interpreted by looking at the value of the coefficient of determination (R-squared value) and the p-value. A higher R-squared value indicates a better fit of the data to the exponential model. The p-value should be less than 0.05 to indicate that the model is statistically significant.

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