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Regression12 5

Regression is a statistical method used to analyze the relationship between a dependent variable and one or more independent variables, allowing researchers to predict or explain the influence of one variable on another. It helps in understanding the strength of these relationships and controlling for confounding variables. The regression line represents how the dependent variable changes with the independent variable, and the analysis is crucial for accurate interpretation of data in various fields such as economics and finance.

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12 views6 pages

Regression12 5

Regression is a statistical method used to analyze the relationship between a dependent variable and one or more independent variables, allowing researchers to predict or explain the influence of one variable on another. It helps in understanding the strength of these relationships and controlling for confounding variables. The regression line represents how the dependent variable changes with the independent variable, and the analysis is crucial for accurate interpretation of data in various fields such as economics and finance.

Uploaded by

arushi10818
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Regression is a statistical method that attempts to determine the

strength and character of the relationship between a dependent variable


and one or more independent variables.

Regression analysis, in the context of research, is a statistical method


used to examine and estimate relationships between variables, especially
to predict or explain the influence of one variable on another. It allows
Simple and Multiple Regression researchers to understand how changes in an independent variable
(predictor) might affect a dependent variable (outcome), and can also
help control for other potential influences.

Regression allows researchers to predict or explain the variation in one


variable based on another variable.

how regression is used in research:


➢ Regression is a statistical technique that relates a dependent variable
➢ Predicting Relationships : Regression models can be used to predict the value of to one or more independent variables.
a dependent variable based on the values of one or more independent variables.
➢ A regression model shows whether changes observed in the
➢ Explaining Influence: Regression can help researchers understand the nature dependent variable are associated with changes in one or more of the
and strength of relationships between variables. independent variables.
➢ It does this by determining a best-fit line to see how the data is
➢ Controlling for Confounding Variables: In research, it's important to consider dispersed around this line.
other factors that might influence the relationship between the variables of ➢ Regression helps economists and financial analysts with challenges
interest. Regression analysis allows researchers to "control" for these
ranging from asset valuation to making predictions.
confounding variables by including them in the model.
➢ Several assumptions about the data and the model itself must hold
for regression results to be properly interpreted.
▪ The variable that researchers are trying to explain or predict is called the
response variable. It is also sometimes called the dependent variable because
it depends on another variable.

▪ The variable that is used to explain or predict the response variable is called
the explanatory variable. It is also sometimes called the independent variable
because it is independent of the other variable.

▪ In regression, the order of the variables is very important

▪ The explanatory variable (or the independent variable) always belongs on


the x-axis.

▪ The response variable (or the dependent variable) always belongs on the y-
axis.
➢ A regression line is a straight line that describes how a response variable y
changes as an explanatory variable x changes.

➢ A regression line can be used to predict the value of y for a given value of x.
▪ Regression analysis identifies a regression line.

▪ The regression line shows how much and in what direction the response
variable changes when the explanatory variable changes.

▪ Most individuals in the sample are not located exactly on the line; the line
closely approximates all the points. The way this line is computed will be
described in more detail later.

➢ simple regression or bivariate regression involving two variables in which one


variable is predicted by another variable.

➢ In simple regression, the variable to be predicted is called the dependent variable


and is designated as y.

➢ The predictor is called the independent variable, or explanatory variable, and is


designated as x.
❑ A response variable can be predicted based on a very simple equation

❑ In statistics, the slope-intercept form of the equation of the regression line through the
population points is

EQUATION OF THE SIMPLE REGRESSION LINE


y INTERCEPT OF THE REGRESSION LINE

STANDARD ERROR OF THE ESTIMATE


Thank you

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