Project profitability
As a real-world example, let's consider a consulting services organization that has data collected describing its project work over time. This organization may be contracted to lead technology and/or business-related projects of all sizes and effort levels. Each project has expenses and revenues. Some projects are profitable, and some are not. The firm is interested in identifying which variables (if any) are candidates for predicting how profitable a project will be, in other words, which variables (in particular) are significant predictors of the dependent variable (in this case profitability)?
Examining the data, we see a good list of both variables and measurements; some of which are listed as follows:
- Number of consultants assigned to the project full time (FT)
- Number of consultants assigned to the project part-time (PT)
- Number of sub-contractors assigned to the project (FT or PT)
- Number of customer resources assigned to the project full time
- Number of customer resources...
