|
Simple Regression Analysis
The Regression Analysis is the part of Statistics that analyzes the
relationship between quantitative variables. It helps predict the
reaction of a variable when a related variable varies.
The objective of Regression analysis is to build a mathematical model
that will help make accurate predictions about the impact of variable
variations.
When building a regression model, if more than one independent variable
is being considered, we call it a multiple regression analysis,
if only one independent variable is being considered, the analysis is a
simple linear regression.
Building a Multiple
Regression Model Using Minitab and Excel
In the
Simple
Linear Regression model that we built to determine the effect of
the variation of the price of gas on the quantities sold, we only
used one independent variable, the price per gallon. In the case of
our example, the variations of the quantities sold could have been
explained by other factors such as new people moving in or out of
the city, the building of a new freeway, the building of a new
factory...etc. All these independent variables can have a
significant impact on the variation of
y
and need to be taken into account for a more accurate regression
model.
www.manorhouseassociates.com
|
