Regression Models

In: Business and Management

Submitted By sandyda04
Words 1282
Pages 6
Regression Models
Student Name
Grantham University
BA/520 – Quantitative Analysis
Instructor Name
April 6, 2013

This paper will refer to regression models and the benefits that variables provide when developing and examining such models. Also, it will discuss the reason why scatter diagrams are used and will describe the simple linear regression model and will refer to multiple regression analysis as well as the potential uses for this type of model.

Regression Models Regression models are a statistical measure that attempts to determine the strength of the relationship between one dependent variable (usually denoted by Y) and a series of other changing variables (known as independent variables). Regression models provide the scientist with a powerful tool, allowing predictions about past, present, or future events to be made with information about past or present events. Inference based on such models is known as regression analysis. The main purpose of regression analysis is to predict the value of a dependent or response variable based on values of the independent or explanatory variables. According to Render, Stair, and Hanna (2011) they are two reasons for which regression analyses are used: one is to understand the relation between various variables and the second is to predict the variable's value based on the value of the other. Variables provide many advantages when creating models. One of the advantages is that the model can be shaped in various ways which would offer the possibility of analysis from different perspectives. The two basic types of regression are linear regression and multiple regressions. Linear regression uses one independent variable to explain and/or predict the outcome of Y, while multiple regressions use two or more independent variables to predict the outcome.…...

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