Most business problems involve many variables. Managers look at multiple performance measures and related metrics when making decisions. Consumers evaluate many characteristics of products or services in deciding which to purchase. Multiple factors influence the stocks a broker recommends. Restaurant patrons consider many factors in deciding where to dine. As the world becomes more complex, more factors influence the decisions managers and customers make. Thus, increasingly business researchers, as well as managers and customers, must rely on more sophisticated approaches to analyzing and understanding data.
Analysis of data has previously involved mostly univariate and bivariate approaches. Univariate analysis involves statistically testing a single variable, while bivariate analysis involves two variables. When problems involve three or more variables they are inherently multidimensional and require the use of multivariate data analysis. For example, managers trying to better.
