Explanatory models

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They allow to determine with precision the relations between :
– a phenomenon whose course we wish to predict: a sale for example, the gain of market share, etc.,
– the variables that influence this phenomenon. n this case, there are two types of variables.

The variables of actions which depend entirely on the will of the company. These are, for example, the number of points of sale that it sets up, the budget allocated to advertising, the price of the products or services offered.

Exogenous variables are those that do not depend on the company’s will. They have absolutely no control over this specific type of variable. This is the case, for example, for the amount of income of each household.