The Use of Predictive Modeling in the Evaluation of Technical Acquisition Performance Using Survival Analysis

Abstract

In the recent statistical literature, the difference between explanatory and predictive statistical models has been emphasized. One of the tenets of this dichotomy is that variable selection methods should be applied only to predictive models. In this paper, we compare the effectiveness of the acquisition strategies implemented by Google and Yahoo for the management of innovations. We argue that this is a predictive situation and thus apply lasso variable selection to a Cox regression model in order to compare the Google and Yahoo results. We show that the predictive approach yields different results than an explanatory approach and thus refutes the conventional wisdom that Google was always superior to Yahoo during the period under consideration.

Statistical Software Programs Used for Business Research

“…Booth and Ozgur discuss how predictive modeling is utilized in evaluation of technical acquisition performance using survival analysis. (Booth, Ozgur 2019) In this table we compare SPSS, SAS, R Studio, Python, MATLAB, and Excel in terms of the program's ease of use, difficulty, storage capacity, availability to students and researchers, overall cost, and each programs applicability in the real world.…”