Regression Analysis Is Increasingly Being Used in Business Applications, Often

Essay

Regression analysis is increasingly being used in business applications, often called "business analytics" (or "predictive analytics"), in which a company studies its customers to gather information that can be used to make each customer more profitable.Companies that do this include Harrah's and eHarmony, among many others.
Required:
(1) Briefly explain how a company could use regression to improve customer profitability.
(2) Do you see any ethical issues involved in the use of business analytics? Explain.