Explanation of Regression Formula

			
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			              Explanation of Regression Formula
Henry Lozada, Professor, Puerto Rico, Member
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.
			            
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