DR. V.R GHODHANIYA B.

ED
COLLEGE
(BBA DEP.)

REGRESSION LINE
PRESENTED BY:- BBA SEM-3
HEM SHIYAL
MIRAL KHETARPAL
MAULIK VADHIYA
UTSAV BANDIA
KISHAN GOHEL
Yash lodhari
 WHAT IS REGRESSION LINE?
 A regression line indicates a linear relationship between
the dependent variables on the y-axis and the
independent variables on the x-axis. The correlation is
established by analyzing the data pattern formed by the
variables.

 Regression is a statistical technique with the help of

which the functional relationship between two variables
can be established and which help us in estimating the
unknown value of one variable for a known value of
other variable.
 EXPLAIN REGRESSION LINE
 A regression line is a statistical tool that depicts the
correlation between two variables. Specifically, it is used
when variation in one
(dependent variable) depends on the change in the value of
the other
(independent variable)

There can be two cases of simple (linear regression)

1) the equation is Y on X, where the value of Y changes with a
variation in the value of x.

2) the equation is X on Y, where the change in X variable

depends upon the Y variable’s deviation
 USES OF REGRESSION LINE
 Linear regressions can be used in business to evaluate
trends and make estimates or forecasts. For example, if a
company’s sales have increased steadily every month for
the past few years, by conducting a linear analysis on the
sales data with monthly sales, the company could
forecast sales in future months.

 Linear regression is commonly used for predictive

analysis and modeling. For example, it can be used to
quantify the relative impacts of age, gender, and diet.
 PROPERTIES OF REGRESSION LINE
 1) The product of regression coefficients is equal to the
square of the correlation coefficient.

 Thus, correlation coefficient is the geometric mean

between two regression coefficients
 As sx and sy are always positive, the signs of byx, bxy
and r depend upon the sign of cov (x,y). If cov (x,y) is
positive byx and bxy and r are positive and if cov (x,y) is
negative byx and bxy and r are negative. Thus, all the
three byx, bxy and r have always the same sign.
 3) if two variables have perfect relationship one regression
coefficient is reciprocal of the other

 4) the product of regression coefficients is r2 which can not

exceed 1. Hence, if one regression coefficient is greater than
1, the other regression coefficient must be less than 1.

 5) the regression coefficients are independent of change of

origin, but not of scale.
DIFFERENCE BETWEEN
CORRELATION REGRESSION
correlation
 Correlation coefficient
Is always between-1and +1
 Correlation coefficient is
independent of change of
origin and scale.
 Correlation coefficient
can be obtained from
regression coefficient.
Regression
 One regression
coefficient can be greater
than 1.
 Regression coefficient are
independent of change of
origin but not of scale.
 Regression coefficient
cannot be obtained from
only correlation
coefficient
THANK YOU
Any question?