Regression

Beyond basics

In its basic form, regression involves predicting the value of one variable based on the value of another variable. The two variables need to have a linear relationship for the prediction to be accurate.

The variable whose value is to be predicted is the dependent variable and the variable which is used to predict the value of the dependent variable is the independent variable..

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How regression works.

Sales

Plotting residuals tells us how well the dependent variable can be predicted.

Regression Statistics
Multiple R R Square Adjusted R Square Standard Error Observations 0.393 0.154 0.124 39.322 30
Goodness of fit

% of variance in dependent variable which is explained by variance of independent variable.