What Line of regression is
Line of regression is a statistical technique used to determine the relationship between two or more variables. It is used to establish a linear relationship between the dependent variable (the one being predicted) and one or more independent variables (the ones that are used to predict the other variable).
Steps for Line of regression:
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Collect the data: Data points should be collected for each of the independent variables and the dependent variable.
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Plot the data on a graph: The data points should be plotted on a graph with the independent variables on the x-axis and the dependent variable on the y-axis.
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Estimate the regression line: The slope and intercept of the line of regression can be estimated using least squares regression.
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Interpret the results: The slope and intercept of the line of regression can be interpreted in terms of the strength and direction of the relationship between the independent and dependent variables.
Examples
- Estimating the effect of a price change on demand for a product.
- Investigating the relationship between temperature and ice cream sales.
- Analyzing the impact of education level on income.
- Examining how advertising spending affects sales.
- Evaluating the influence of a new policy on unemployment rate.
- Examining the effect of a new drug on recovery time from an illness.