REGRESSION

• The main concern of linear regression is with the problem of estimation, prediction or forecasting.
• Regression Equation is a mathematical equation that allows us to predict values of one dependent variable from known values of one or more dependent variables.
• Trend Line is a line that represents the series of points that were plotted in such a way that line approximates the general direction of the points and passes through points.
• Graphical Method consists of plotting the points corresponding to the paired values of X and Y on the rectangular coordinate system.
• Graphical Method provides a rough estimate.
• Regression Formula is a fairly accurate estimate when the values of any two variables are given.
• Regression Formula makes use of the equation.
• a is the intercept in the Regression Formula.
• b is the slope of the line fitted to the sample in the Regression Formula.
• b is the estimated value of the dependent variable in the Regression Formula.
• X is the observed value of the independent variable in the Regression Formula.