Explanation of Regression Formula

Regression Analysis
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Henry Lozada
Professor, Puerto Rico
The regression formula is: Y = B0 + B1X or: Dependent variable = constant + B1independent variable B1= 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: B0 = 0 there is no relationship Ha: B0 =/= there is a relationship R square (R2) = 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. (...) Read more? Sign up for free


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