Why are Non-Linear Models Like MARS Crucial for Complex Data Analysis in Internet Businesses?

An online marketing analytics firm is evaluating different modeling techniques for various data sets. Identify which of the following scenarios are best suited for a non-linear model like MARS:


  • 1. Forecasting sales for a new product line where the relationship between sales and marketing channels is complex and interactive.

  • 2. Analyzing customer satisfaction scores where scores plateau after a certain level of service enhancements.

  • 3. Predicting online ad conversion rates based on linearly increasing monthly ad spend data.

Choose the closest answer: