I have some doubts , I have a data were 9 variables are categoricsl , 4 are continous
out of which 2 are cost and sales.I have to maximize sales and reduce cost. How do i do it, which regression has to be applied.
Regression is used for inference and predictions, to find the optimal solution which gives you maximum sales or minimum cost, you have do it with linear programming.
Linear programming you mean linear regression? If yes!
I have doubt’
Can we use linear regression on CATEGORICAL VARIABLES?
as my most of my variables in data set are categorical
It does not depend upon how many independent variable are categorical or continuous, it totally depend upon your dependent variable, in your case it may be sales or cost
And linear programming is not same as liner regression.
check out this for your reference: