What Regression is
Regression is a statistical technique used to analyze data and uncover relationships between variables. It is used to predict a dependent variable (outcome) based on one or more independent variables (predictors). Regression is a powerful tool for both understanding and predicting data.
The steps for a regression analysis are:
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Define the research question and determine the relevant variables to be studied.
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Collect and organize the data.
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Choose a regression model and test assumptions.
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Estimate the regression equation.
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Check the model fit and assumptions.
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Interpret the results and validate the findings.
Examples
- Predicting house prices based on location, size, and other variables.
- Estimating the impact of a change in interest rates on the stock market.
- Measuring the effect of changes in advertising spend on sales.
- Forecasting the future demand for a product or service.
- Evaluating the relationship between fuel efficiency and engine size.