+ Reply to Thread
Results 1 to 7 of 7

Regression Model - Solver Issue With 15+ Independent Variables

  1. #1
    Registered User
    Join Date
    12-25-2015
    Location
    Los Angeles, CA
    MS-Off Ver
    Office 2016
    Posts
    16

    Regression Model - Solver Issue With 15+ Independent Variables

    Hey all -

    I've been reading a book by Wayne Winston titled, "Marketing Analytics" and one of his chapters discusses using regression through solver when you have more than 15 independent variables. Basically, solver can estimate the coefficients of up to 200 independent variables when you apply solver to minimize the sum of squared errors. Below is the example from the book (open up solver to see what he was doing):

    https://expirebox.com/download/0dd08...2c1d7c4b9.html

    I wanted to take his example and apply it to my own work problem (my #'s have been randomized for privacy purposes). See below for my work problem:

    https://expirebox.com/download/ae12e...7f81d2b62.html

    I'm trying to forecast menu item branded purchase intent (which can be anything from 0 - 1) from item type and a metric called value. I've set up my Excel sheet nearly identical to the example from the book, but I'm receiving an error that says the problem is "too big" for solver to handle.

    This doesn't make sense to me because I'm using 20 variables for item type + 1 other metric (value) for a total of 21 variables. I think the error is showing up because I've forced menu item branded purchase intent to be between 0 and 1.

    Anyone have any solutions/ideas for how my work problem could be fixed to derive a solution similar to the example from the book?

    Much appreciated!

    EDIT: One error I noticed on the constraints: branded purchase intent should also be >= 0 along with being <= 1.

  2. #2
    Forum Guru
    Join Date
    04-13-2005
    Location
    North America
    MS-Off Ver
    2002/XP and 2007
    Posts
    15,825

    Re: Regression Model - Solver Issue With 15+ Independent Variables

    According to this: https://www.solver.com/standard-exce...mits-continued Solver is limited to 100 individual constraints. Your Solver model has 1400+ cells in the one constraint, and I think Solver is treating that as too many constraints. I think you need to examine your regression model and see if you can reduce the number of constraints somehow or obtain a more robust solver engine (either from Frontline or other source) that can handle that many constraints.
    Quote Originally Posted by shg
    Mathematics is the native language of the natural world. Just trying to become literate.

  3. #3
    Registered User
    Join Date
    12-25-2015
    Location
    Los Angeles, CA
    MS-Off Ver
    Office 2016
    Posts
    16

    Re: Regression Model - Solver Issue With 15+ Independent Variables

    Ah! That makes sense. Since the constraints are applied to my forecast column itself, which contains a sample of 1,000+ menu items, should I just remove those constraints? The problem is that branded purchase intent is a percentage, so it would need to be between 0 and 1...any way to force this constraint without applying it to 1,000+ rows?
    Last edited by bball23; 12-19-2017 at 06:36 PM.

  4. #4
    Forum Guru
    Join Date
    04-13-2005
    Location
    North America
    MS-Off Ver
    2002/XP and 2007
    Posts
    15,825

    Re: Regression Model - Solver Issue With 15+ Independent Variables

    I deleted that constraint and let the solver model run and it converged just fine. I added a COUNTIFS(E6:E1449,">1",E6:E1449,"<0") function to see if any were outside of the 0 to 1 range. So the results of the forecast column seemed to naturally meet the constraint without explicitly declaring the constraint. Have you encountered scenarios where this constraint is violated? Can you identify why those cases exceeded the constraint? I think I would want to explore scenarios that caused it to violate those constraints and see if I could understand what causes the violation, then address it that way.

    After adding that COUNTIFS() function, you could make the constraint (countifs function =0). However, Solver sometimes has trouble with counting functions because they are not continuous. That might be worth looking into.

  5. #5
    Registered User
    Join Date
    12-25-2015
    Location
    Los Angeles, CA
    MS-Off Ver
    Office 2016
    Posts
    16

    Re: Regression Model - Solver Issue With 15+ Independent Variables

    Really? When I remove the constraints, the forecast column now only shows "0" and 1's," which is not realistic for a branded purchase intent score for menu items as they are typically a percentage between 0 and 1. Perhaps you could post a link to your version?

    But to answer your question, no I haven't encountered any scenarios where the constraint was violated because when I remove the constraints the only numbers in that forecast column are either 0 or 1.

    Interesting point, though, about the constraint on COUNTIFS. Definitely worth looking into.

  6. #6
    Forum Guru
    Join Date
    04-13-2005
    Location
    North America
    MS-Off Ver
    2002/XP and 2007
    Posts
    15,825

    Re: Regression Model - Solver Issue With 15+ Independent Variables

    Really? When I remove the constraints, the forecast column now only shows "0" and 1's," which is not realistic for a branded purchase intent score for menu items as they are typically a percentage between 0 and 1. Perhaps you could post a link to your version?
    I did not save my version, though I recall that the format on column E was "integer (number with no decimals)" or something like that -- naturally causing numbers between 0 and 1 to display as either 0 or 1. You should be able to apply whatever number format you think is appropriate to better see the actual values returned to these cells.

  7. #7
    Registered User
    Join Date
    12-25-2015
    Location
    Los Angeles, CA
    MS-Off Ver
    Office 2016
    Posts
    16

    Re: Regression Model - Solver Issue With 15+ Independent Variables

    Oh boy I see what you mean haha! Such an amateur mistake there. I just extended column E to show 2 decimal places and it worked. Appreciate you getting back to me - it's always great to have another set of eyes!

+ Reply to Thread

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. Replies: 1
    Last Post: 04-27-2016, 03:05 PM
  2. Help building a regression model
    By Wazo11 in forum Excel General
    Replies: 1
    Last Post: 09-03-2015, 12:08 PM
  3. Help building a regression model
    By Wazo11 in forum Excel General
    Replies: 0
    Last Post: 09-03-2015, 10:55 AM
  4. Help building a regression model
    By Wazo11 in forum Excel General
    Replies: 0
    Last Post: 09-03-2015, 10:28 AM
  5. Replies: 0
    Last Post: 07-20-2014, 12:45 PM
  6. Regression Model in Excel.
    By dude777 in forum Excel General
    Replies: 1
    Last Post: 04-12-2012, 06:05 PM
  7. Replies: 1
    Last Post: 04-02-2006, 07:10 PM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts

Search Engine Friendly URLs by vBSEO 3.6.0 RC 1