What's the Most Appropriate Type of Regression for this Problem?
I have a data set from two groups: firms that use AI and their costs and firms that don't use AI and their costs. Within both groups I have data about their specific costs, e.g. fixed costs, variable costs, etc.
I'm not sure if regression is the best way to do this, but I want to explore whether firms that use AI have lower costs. Any ideas on how I'd do this? Could I run OLS on both groups and just compare? The sample for firms that use AI is ~40 and ~100 for those that don't.
statistics regression linear-regression regression-analysis
asked Jan 5 at 21:51
MathsHelpMathsHelp
16810
add a comment |
I have a data set from two groups: firms that use AI and their costs and firms that don't use AI and their costs. Within both groups I have data about their specific costs, e.g. fixed costs, variable costs, etc.
I'm not sure if regression is the best way to do this, but I want to explore whether firms that use AI have lower costs. Any ideas on how I'd do this? Could I run OLS on both groups and just compare? The sample for firms that use AI is ~40 and ~100 for those that don't.
statistics regression linear-regression regression-analysis
asked Jan 5 at 21:51
MathsHelpMathsHelp
16810
add a comment |
I have a data set from two groups: firms that use AI and their costs and firms that don't use AI and their costs. Within both groups I have data about their specific costs, e.g. fixed costs, variable costs, etc.
I'm not sure if regression is the best way to do this, but I want to explore whether firms that use AI have lower costs. Any ideas on how I'd do this? Could I run OLS on both groups and just compare? The sample for firms that use AI is ~40 and ~100 for those that don't.
statistics regression linear-regression regression-analysis
asked Jan 5 at 21:51
MathsHelpMathsHelp
16810
I have a data set from two groups: firms that use AI and their costs and firms that don't use AI and their costs. Within both groups I have data about their specific costs, e.g. fixed costs, variable costs, etc.
I'm not sure if regression is the best way to do this, but I want to explore whether firms that use AI have lower costs. Any ideas on how I'd do this? Could I run OLS on both groups and just compare? The sample for firms that use AI is ~40 and ~100 for those that don't.
statistics regression linear-regression regression-analysis
statistics regression linear-regression regression-analysis
asked Jan 5 at 21:51
MathsHelpMathsHelp
16810
asked Jan 5 at 21:51
MathsHelpMathsHelp
16810
edited Jan 5 at 21:59
MathsHelp
asked Jan 5 at 21:51
MathsHelpMathsHelp
16810
asked Jan 5 at 21:51
MathsHelpMathsHelp
16810
asked Jan 5 at 21:51
MathsHelpMathsHelp
16810
16810
add a comment |
add a comment |
1 Answer
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You probably want to do a two-sample t-test since you are comparing two populations on one variable and you would like to check if the means of the costs from both groups are equal. There are a few variants of the two-sample t-test based on whether you want to pool or not.
You probably want to use the null hypothesis:
$$H_0 : mu_1 = mu_2$$ where $mu_1$ is the mean cost for the first population (those that use AI) and $mu_2$ is the mean cost for the second population, and use an alternative hypothesis of:
$$mu_1 < mu_2$$ to see whether firms that use AI (population 1) have less cost.
For reference, wikipedia article on t-tests or this article.
answered 2 days ago
twnlytwnly
536110
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1 Answer
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1 Answer
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active
oldest
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You probably want to do a two-sample t-test since you are comparing two populations on one variable and you would like to check if the means of the costs from both groups are equal. There are a few variants of the two-sample t-test based on whether you want to pool or not.
You probably want to use the null hypothesis:
$$H_0 : mu_1 = mu_2$$ where $mu_1$ is the mean cost for the first population (those that use AI) and $mu_2$ is the mean cost for the second population, and use an alternative hypothesis of:
$$mu_1 < mu_2$$ to see whether firms that use AI (population 1) have less cost.
For reference, wikipedia article on t-tests or this article.
answered 2 days ago
twnlytwnly
536110
add a comment |
You probably want to do a two-sample t-test since you are comparing two populations on one variable and you would like to check if the means of the costs from both groups are equal. There are a few variants of the two-sample t-test based on whether you want to pool or not.
You probably want to use the null hypothesis:
$$H_0 : mu_1 = mu_2$$ where $mu_1$ is the mean cost for the first population (those that use AI) and $mu_2$ is the mean cost for the second population, and use an alternative hypothesis of:
$$mu_1 < mu_2$$ to see whether firms that use AI (population 1) have less cost.
For reference, wikipedia article on t-tests or this article.
answered 2 days ago
twnlytwnly
536110
add a comment |
You probably want to do a two-sample t-test since you are comparing two populations on one variable and you would like to check if the means of the costs from both groups are equal. There are a few variants of the two-sample t-test based on whether you want to pool or not.
You probably want to use the null hypothesis:
$$H_0 : mu_1 = mu_2$$ where $mu_1$ is the mean cost for the first population (those that use AI) and $mu_2$ is the mean cost for the second population, and use an alternative hypothesis of:
$$mu_1 < mu_2$$ to see whether firms that use AI (population 1) have less cost.
For reference, wikipedia article on t-tests or this article.
answered 2 days ago
twnlytwnly
536110
You probably want to do a two-sample t-test since you are comparing two populations on one variable and you would like to check if the means of the costs from both groups are equal. There are a few variants of the two-sample t-test based on whether you want to pool or not.
You probably want to use the null hypothesis:
$$H_0 : mu_1 = mu_2$$ where $mu_1$ is the mean cost for the first population (those that use AI) and $mu_2$ is the mean cost for the second population, and use an alternative hypothesis of:
$$mu_1 < mu_2$$ to see whether firms that use AI (population 1) have less cost.
For reference, wikipedia article on t-tests or this article.
answered 2 days ago
twnlytwnly
536110
edited 2 days ago
answered 2 days ago
twnlytwnly
536110
answered 2 days ago
twnlytwnly
536110
answered 2 days ago
twnlytwnly
536110
536110
add a comment |
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