REGRESSION
INTRODUCTION
The meaning of the word “Regression” is stepping back or returning
to the average value
It is the statistical tool used to estimate the unknown value of one
variable from known value of the related variable is called regression
Correlation considers the joint variation of two variables, neither of
which is restricted by the researcher whereas regression considers the
variation of one variable when another is held fixed at several levels
For example, the study of the relationship between intelligent quotient
of students and grade of schools, blood pressure and metabolism of
cell
DIFFERENCE BETWEEN CORRELATION AND REGRESSION
Basis Correlation Regression
A statistical measure that defines Describes how an independent
Meaning co-relationship or association of variable is associated with the
two variables. dependent variable.
Dependent &
Independent No difference Both variables are different.
variables
To describe a linear relationship To fit the best line and estimate one
Usage
between two variables. variable based on another variable.
To estimate values of a random
To find a value expressing the
Objective variable based on the values of a
relationship between variables.
fixed variable.
SCATTER DIAGRAM
It an simple statistical tool used to show a relationship between two
variables
Though simple, it does not give an accurate result
It is used to show the “Cause and effect” relationship between the two
kinds of data and to provide more useful information about the
production process
Independent variable is placed on horizontal, X- axis and dependent is
placed at vertical, Y-axis
𝒚𝒚 = 𝒂𝒂 + 𝒃𝒃𝒃𝒃 𝒙𝒙 = 𝒂𝒂 + 𝒃𝒃𝒃𝒃
Y – axis
Y – axis
X = independent factor X = dependent factor
Y = dependent factor Y = independent factor
a = intercept a = intercept
b = slope of the line b = slope of the line
X – axis X – axis
APPLICATION
Regression is useful in various types of analysis
It can be applied to obtain the most probable values of one series for
given value of the other related series. For example series of supply and
price
Coefficient of regression is used to assess how strong the linear
relationship is between two variables
It is sometimes known as goodness of fit
It is represented as value between 0 to 1, 0 indicating that the outcome
cannot be predicted by any of the independent variables, 1 indicated a
perfect fit or the outcome can be predicted by any of the independent
variables
