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Linear Regression

Linear regression analyzes the relationship between two variables by fitting a straight line to the observed data points. It identifies the central tendency of the relationship and provides a simplified model to predict the response variable from values of the predictor variable. Linear regression has three main uses: determining the strength of predictors, forecasting effects, and trend forecasting. It assumes variables are measured continuously, there is a linear relationship between variables, and residuals are normally distributed. Simple linear regression estimates the relationship between two quantitative variables, while multiple linear regression does so between multiple independent variables and a dependent variable.

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Andrea Leonor
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53 views

Linear Regression

Linear regression analyzes the relationship between two variables by fitting a straight line to the observed data points. It identifies the central tendency of the relationship and provides a simplified model to predict the response variable from values of the predictor variable. Linear regression has three main uses: determining the strength of predictors, forecasting effects, and trend forecasting. It assumes variables are measured continuously, there is a linear relationship between variables, and residuals are normally distributed. Simple linear regression estimates the relationship between two quantitative variables, while multiple linear regression does so between multiple independent variables and a dependent variable.

Uploaded by

Andrea Leonor
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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LINEAR REGRESSION

Correlation Vs. regression


Correlation tells us about Regression tells us about
the strength (and shape) the nature of the function
of the relationship relating the two variables.
between two variables.

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Regression line
- Regression analysis fits a straight
line to the relationship between the
two variables. The line that is fit to
the relationship has certain
properties.

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Regression line
✗ It is as close as possible, in a specific average least
squares sense, to all of the points.
✗ Identifies the "central tendency" of the relationship
between the two variables, just as the mean identifies the
"central tendency" of a single variable.
✗ Provides a simplified description --- a model --- of the
relationship between the two variables.
✗ Gives us a way to predict values for the response variable
from values of the predictor variable.

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3 major uses for regression analysis

1. Determining the strength of predictors.

2. Forecasting an effect

3. Trend forecasting

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Regression models
Describe the relationship
between variables by fitting a
line to the observed data.

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Assumptions of linear regression
1. Your DV should be measured at the continuous level
2. Your IV should also be measured at the continuous level
3. There needs to be a linear relationship between the two
variables
4. There should be no significant outliers.

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Assumptions of linear regression
1. You should have independence of observations
2. Your data needs to show homoscedasticity
3. you need to check that the residuals (errors) of the
regression line are approximately normally distributed

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Simple linear regression
It is used to estimate the relationship between 2
quantitative variables. You can use simple linear
regression when you want to know:

✗ How strong the relationship is between 2 variables.


(e.g. relationship between rainfall and soil erosion)
✗ The value of the DV at a certain value of the IV. (e.g.
amount of soil erosion at a certain level of rainfall)

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Multiple linear regression
✗ Multiple linear regression establishes the relationship
between independent variables (two or more) and the
corresponding dependent variable. Here, the independent
variables can be either continuous or categorical. This
regression type helps foresee trends, determine future
values, and predict the impacts of changes.

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