This will limit this technique to only data that are linear and cannot work with non-linear problems. This will go a long way in improving the business.The patterns of the variables will give a clear relationship of how the business behaves and this will give the manager ideas to follow for the successful running of their businesses (Stopford 2008).Linear regression is normally used with variables that are represented linearly. For example, a business owner who thinks that extending business hours would certainly increase profits may re-think this when they use the technique. Therefore, it will help in making decisions of the business (Yao and Li 2013).The variables in this technique help in correcting certain mistakes that would otherwise be made in a normal business setting. It helps one to select the precise variables that can be used in the study of managing a business. It also helps in reducing clustered and excessive data in a given setting to a manageable amount.
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