Regression Analysis

Describing and evaluating the relationship between the dependent variable, and one or more independent variables. Explanation of Regression Analysis. Statistical Forecasting.

What is Regression Analysis? Description

Regression Analysis is a statistical forecasting model, that is concerned with describing and evaluating the relationship between a given variable (usually called the dependent variable) and one or more other variables (usually called the independent variables).

Usage of Regression Analysis. Benefits

Regression analysis can predict the outcome of a given key business indicator (dependent variable) based on the interactions of other related business drivers (explanatory variables). For example: it allows you to predict sales volume, using the amount spent on advertising and the number of sales people that you employ. Of course, a real model would need more variables and is much more complex.

Nobody can really see into the future. However modern statistical methods, econometric models and business intelligence software can be used to forecast and estimate what is going to happen in the future.

Regression Analysis models are used to help us predict the value of one unknown variable, through one or more other variables whose values can be predetermined.

Steps in Regression Analysis. Process

The first stage of the process is to identify the variable that we must predict (the dependent variable). Then we carry out multiple regression analysis, focusing on the variables we want to use as predictors (explanatory variables). The multiple regression analysis would then identify the relationship between the dependent variable and the explanatory variables. This is then finally presented as a model (formula).

Regression Analysis Forum

Cosmas - Nigeria

More details on process?

"Who can give a further feel of the regression analysis process, so as we can do some of it on our own. Thanks..."

-3

Kalama - Kenya

Research

"Great description of regresion analysis. So well presented that any person with no statistical background can have a feel of the beauty of this rather complex analysis. Maybe just to add to this explaination- regression analysis enables one to determine the most critical predictor variable."

7

brooklynguy - usa

more details

"you really only explain the uses of regression analysis, but not the process by which it is carried out. I would love to see some formulas with a sample set of variables to help me understand it. otherwise i will just be hiring people for some math i could probably do on my own. also, the chart is useless. it needs to have an explanation about the meaning of each line."

-7

rue - uk

accountancy (business mathemat

"that was a relly good description. it was very useful."

9

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