Regression Analysis

There are various techniques for analysing the relationship between dependent and independent variables
These techniques help you understand how the dependent variable changes when one of the independent variables change (while the other independent variables remain the same)


Regression analysis estimates the conditional expectation (ie average value) of the dependent variable, given the independent variables
The estimation target is a function of the independent variables called the "regression function"


It is also common to characterise the variation of the dependent variable around the regression function which can be described by a probability distribution
Regression analysis is widely used for prediction and forecasting


In some circumstances, regression analysis can be used to infer "casual" relationships between the dependent and independent variables


Coefficient of Determination

Before a regression equation can be used effectively you need to see how well it fits the data.
One statistic that can be used as an indication is the coefficient of determination.
This measures the proportion of the variation in the independent variable.
This is given by r2 which is the square of the Correlation > Pearsons Coefficient




Parametric Regresson

The regression function is defined in terms of a finite number of unknown parameters that are estimated from the data




Non Parametric Regression

The regression function can lie in a specified set of functions which may be infinite in dimension





Interpolation



Extrapolation


SLOPE - The slope of the linear regression. This is a type of bivariate descriptive function.
RSQ - The square of the Pearson product moment correlation coefficient (ie coefficient of determination)
LINEST - used to project an exponential curve
INTERCEPT
STEYX
LOGEST - used to project a straight line
TREND -
FORECAST -




Multiple Regression


This is the analysis of more than one set of data.
You can perform both linear and exponential multiple regression analysis
For example if you want to project house prices in your area based on square footage, number of bathrooms and age this could be done using a multiple regression formula



© 2024 Better Solutions Limited. All Rights Reserved. © 2024 Better Solutions Limited TopPrevNext