What are some of the pitfalls and limitations of regression and correlation analysis and how might they impact a business decision?

Respond to the following in a minimum of 300 words:

Discuss the role of regression analysis in business by using examples of how these models might work to make predictions. In your discussion, consider the various components of the output and how it might be of value to understanding the data.

What is the purpose of using correlation, regression and multiple regression analysis? How may these techniques be used in business decisions or in relation to strategy formulation and implementation?

What are some of the pitfalls and limitations of regression and correlation analysis and how might they impact a business decision?