1 Introduction
Regression Analysis is a statistical tool for investigating the relationship between a dependent variable and one or more independent variables.
Regression analysis is widely used for prediction and forecasting.
Example 1.0.1. You are a marketing analyst for Disney Toys. You gather the following data:
| Ad ($) | 1 | 2 | 3 | 4 | 5 |
| Sales (units) | 1 | 1 | 2 | 2 | 4 |
We let
- advertising \(X\) be the regressor variable (independent);
- sales \(Y\) be the response variable (dependent).
What is the relationship between sales and advertising?
Note. We can control the advertising \(X\); the sales \(Y\) we can only observe.
1.1 Scatter plot
1.2 Statistical and deterministic relationships
1.3 What “linear” means
1.4 Uses of regression
1.5 Steps in a regression analysis
1.2 Statistical and deterministic relationships
1.3 What “linear” means
1.4 Uses of regression
1.5 Steps in a regression analysis
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