Publication by Sentrana Scientist Provides New Statistical Method to Reveal Foodservice Insights
Summary
“BPCR is valuable in real-world situations that involve highly correlated variables when a standard regression model can’t determine which has more impact,” said Dr. Wang.To preview or purchase the article, please visit: http://www.tandfonline.com/doi/abs/10.1080/02664763.2011.644524 Washington, DC, September 26, 2012 --( PR.com )-- Sentrana Inc., a Washington DC-based leader in scientific marketing solutions, reported today on the publication of research by Principal Scientist Liuxia Wang, Ph.D., which reveals an unexpected relationship between the stock price and certain financial performance metrics of a top foodservice company.Dr. Wang’s paper, entitled “Bayesian principal component regression with data-driven component selection,” describes the creation of a hierarchical probabilistic principal component regression model that outperforms existing methods and more accurately identifies the factors most responsible for stock price movement.The paper’s case study, which investigates the relationship between stock price and financial performance metrics, somewhat unexpectedly reveals that revenue increases do not always lift a stock price.The model developed from historical performance data clearly shows that shareholders value gross profit, net earnings, and profit margin more than revenue increases.For this analysis, Dr. Wang used financial performance and share price data from 12 quarters between 2002 and 2006.BPCR can uncover the subtle differences between these two variables and identify which is the most important.”As in the case of customer retention or any analysis involving highly correlated variables, this new method is optimal for identifying the true relationships between key variables and their impact on outcomes.To preview or purchase the article, please visit: http://www.tandfonline.com/doi/abs/10.1080/02664763.2011.644524 Contact Information Sentrana, Inc. Bahia Simons-Lane 202-507-4531 www.sentrana.com Click here to view the list of recent Press Releases from Sentrana, Inc. Promote Your Business Press Release Pricing Email this page to a friend