examine_driver_Ynumeric: Main driver analysis when Y is a numeric quantity

In regclass: Tools for an Introductory Class in Regression and Modeling

Main driver analysis when Y is a numeric quantity

Description

This function provides a "main driver analysis" on the association between a numeric y variable and the "driver" x. A visualization of the strength of the relationship is provided as well as numerical output to help quantify the variation of y across possible values of the "driver" x.

Usage

examine_driver_Ynumeric(formula,data,sort=TRUE)

Arguments

formula	A standard R formula written as y~x, where y is the variable of interest and x is the driver.
data	An argument giving the name of the data frame that contains x and y.
sort	TRUE (default) or FALSE. Indicates whether to sort the avearge value of y from largest to smallest.

Details

Main driver analysis is a cornerstone of business analytics where we identify and quantify the key factors (drivers) that most strongly influence a business outcome or performance metric.

This function handles the case when y (the outcome variable) is numeric (see examine_driver_Ycat when y is categorical).

If the driver x is numeric, a scatterplot is presented along with a trend line (in blue; a black line for the average value of y is added). A summary of a simple linear regression model is also provided.

If the driver x is categorical, side-by-side boxplots of the distribution of y for each value of x is provided (a black line gives the average value of y in the data). A table giving the average value of y for each value of x is provided along with a "connecting letters report" to discern which levels have statistically significant differences in the average value of y (if ANY letters are in common between two values of x, there is not a statistically significant difference in the average value of y between those two values of x; if ALL letters are different, the difference in the average value of y is statistically significant).

The function also provides a "Driver Score" (a value between 0 and 1 which is simply the R-squared of a simple linear regression predicting y from x). Larger driver scores indicate stronger associations between y and x.

Author(s)

Adam Petrie

References

Introduction to Regression and Modeling

See Also

examine_driver_Ycat

Examples

  #X numeric
  data(CUSTLOYALTY)
	examine_driver_Ynumeric(CustomerLV~WalletShare,data=CUSTLOYALTY)
	
	#X categorical (no statistically significant differences in levels)
  data(CUSTLOYALTY)
	examine_driver_Ynumeric(CustomerLV~Married,data=CUSTLOYALTY)
	
	#X categorical (statistically significant differences in levels)
  data(CUSTLOYALTY)
	examine_driver_Ynumeric(CustomerLV~Income,data=CUSTLOYALTY)
	 

regclass documentation built on June 8, 2025, 12:40 p.m.