Independent Variables
Independent Variables
Independent Variables
Regression analysis includes several variations, such as linear, multiple linear, and nonlinear. The most
common models are simple linear and multiple linear. Nonlinear regression analysis is commonly used
for more complicated data sets in which the dependent and independent variables show a nonlinear
relationship.
Regression Analysis – Linear model assumptions
Linear regression analysis is based on six fundamental assumptions:
1. The dependent and independent variables show a linear relationship between the slope and the
intercept.
2. The independent variable is not random.
3. The value of the residual (error) is zero.
4. The value of the residual (error) is constant across all observations.
5. The value of the residual (error) is not correlated across all observations.
6. The residual (error) values follow the normal distribution.