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Explanation of Regression Formula Henry Lozada, Professor, Puerto Rico, Member
The regression formula is:
Y = B_{0} + B_{1}^{X} or: Dependent variable = constant + B_{1}^{independent variable}
B_{1}= for each change of the independent variable (X), it will increase or decrease the dependent variable (Y)
Rule of thumb:
T > 2 significant slope
T < 2 not significant slope
Hypothesis:
Ho: B_{0} = 0 there is no relationship
Ha: B_{0} =/= there is a relationship
R square (R^{2}) = explains the % of dependent variable Y, is explained by the variability of the variable independent X
I will recomend to use SPSS. It provides the factor that you need to resolve your necesity. You need historical information of your financial statement / accounting (sales, cost, and other information)
I hope the information will help others.






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