One of the most difficult tasks in regression analysis is to obtain the data suitable for quantitative studies of this kind. Suppose you are trying to estimate the demand for home furniture. Suggest the kinds of variables that could be used to represent the following factors, which are believed to affect the demand for any product. Be as specific as possible about how the variables are going to be measured. Do you anticipate any difficulty in securing such data? Explain.
Determinants of Demand Suggested Variables to
for Furniture Use in Regression Analysis
Price
Tastes and preferences
Price of related products
Income
Cost or availability of credit
Number of buyers
Future expectations
Other possible factors