Simple Linear Regression

Prof. Kunal Ghosh

 Simple Linear Regression

• Regression establishes existence of an association relationship

between two variables, and not a causal relationship.
• The use of the term ‘dependent variable’ does not imply that the
changes in the values of that variable are dependent on the changes
in the values of the independent variable(s).
 Simple Linear Regression

• Regression is one of the most important techniques in predictive

analytics since many prediction problems are modelled using
regression.
• It is one of the supervised learning algorithms, that is, a regression
model requires the knowledge of both the dependent and the
independent variables in the training data set.
 Simple Linear Regression

• Organizations use several key performance indicators (KPIs) such as

cost of goods sold,
customer lifetime value,
growth rate,
market share,
productivity,
profit,
return on investment (ROI), etc. to measure their performance.
 Simple Linear Regression

• KPIs, in turn, may be influenced by several factors.

• For example, the market share of a product sold by a company may be
associated with factors such as:
Price of the product
Promotion expenses
Competitors’ price
Competitor’s promotion expenses
New product introductions
Macro-economic variables such as gross domestic product (GDP),
inflation, unemployment, and so on.
 Simple Linear Regression

• Organizations would like to understand the existence of

relationships between key performance indicators and other factors
which may be exploited to improve the performance and to add
value to the organization.
 Simple Linear Regression

• Simple Linear Regression (SLR) is a statistical model in which there is

only one independent variable and the functional relationship
between the dependent variable and the regression coefficient is
linear.
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression
Simple Linear Regression