statistical procedure for estimating the average relationship between the dependent variable (sales, for example) and one or more independent variables (price and advertising, for example). It is a popularly used method for estimating the cost-volume formula (y = a + bx). simple regression involves one independent variable, e.g., direct labor-hours or machine-hours alone, whereas multiple regression involves two or more independent variables. Assuming a linear relationship, the simple regression model indicates that the relationship is y = a + bx, where a, and b are unknown constants, called regression coefficients. The multiple regression model is y = a0 + a1x1 + a2x2 + ... + akxk, where a's are coefficients and x's represent the number of independent variables.
In estimating the cost-volume formula, regression analysis attempts to find a line of best fit. To find the line of best fit, a technique called the least-squares method is widely used.
Source: http://www.allbusiness.com/glossaries/regression-analysis/4954162-1.html#ixzz1mJauvICl
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