# lll

704 Words3 Pages
Business intelligence transforms a large amount of data and information to actionable knowledge which can create business value though set of processes, tools and methodologies. (Solomon, 2004). As required by Freecycle, the database designed provides a prediction about level of satisfaction of category by choosing regression techniques.

1. Regression analysis
Regression analysis is a statistical process for estimating the relationships among a dependent variable and one or more independent variables. Given the value of the independent variables, the result of unknown dependent variable can be predicted. Suitable
Objective: predict level of satisfaction of transacted category in offers.
Regression equation:
Y（level of satisfaction）=β1+β2 X1+β3X2+μ

Y=level of satisfaction
X1=new to old condition of items
X2=gender
μ= random disturbance
Y(level of satisfaction) takes value from 1 to 5: 1 represents Dissatisfaction, 5 represents Highly Satisfactory.
X1(new to old condition of items) describe the condition or the quality of transaction items which takes value from 1 to 5: 1 represents old and 5 represents bran-new.
X2(gender) takes value of 1 and 0, 1 represents Male and 0 represents Female.

Step 1: Select the relevant information from database

Step2 : Run the linear regression using STATA

Coefficient analysis of the regression

Step 3: After obtaining the constant and coefficients of variables, the regression is following:
Y=1.59+0.74X1-0.11X2+μ

Evaluation: According to the regression coefficients calculated and coefficient analysis of the regression, there are positive relationship between level of satisfaction and condition. However, the dummy variable, gender, has low coefficient which means it has insignifi...

... middle of paper ...

...e adopted for development. Firstly, a forum could be set for customers to comment on specific items and share information with others. Therefore, the manager is empowered to better instant information control of whole database for supervise purpose. The second is about ‘information push’ function. Especially, when a member logs on the website the system will send him related information automatically according to historical records stored in the database, such as product type and transaction address. And similar type of products in selection list will be pushed to him for later publish too for convenient use.
Database security and database recovery should also be taken into consideration, which enable protecting the database against intentional or accidental threats of incurring loss or damage, thereby emphasizing the need of Recovery process in case of any failure.