Accounting

As we go on with our daily lives, we always think of how much is our budget for the day and how we can optimize that budget to meet our day’s needs. It is all about optimization and analysis, just as the title of this blog. It would be such a great help if we have a tool that would readily tell us what is the best for us to do with our budget. And luckily, developing such app is very much possible just like how we thought of computerizing Accounting Systems was impossible several decades ago.

In the world of Numbers and Equations, all of our daily activities can be quantified and broken down into different datasets. These datasets sets usually exhibit relationships among their variables. These relationships are often linear, or at least approximately so, making them amenable to common analysis techniques. One such technique is principal component analysis (”PCA”), which rotates the original data to new coordinates, making the data as “flat” as possible.

Amazing isn’t it? Well, it simply wonderful to know that is very much possible.

Online Social Marketers often faced with a problem on how they can increase their sales from their online visitors.  Knowing the probability of their visitors to purchase a product could be the key and therefore a scientific method with high accuracy to extract such information is needed. The Logit Method or Logit Model is one of the most popular.

To apply the Logit Method in predicting when will a customer will decide to purchase an item, use the formula:

where z = Intercept + ab + cb1 + db2

Use the following values: Intercept = -5; b = 2; b1 = -1; b2 = 1.2

So, if customer A is single, 38 years old with an stable monthly income of $6000 as an Accountant/Accounting Software Consultant, and he often browse the Toyota Prius page, registered in the website to get the latest updates and leaves his contact information.

Then the rest is up to you readers to decide.