 |
 |
| Unit 5 ~ Quantitative Techniques for Business | |
| Lesson 10 - 11th April 2000 | |
| Regression | |
Click here to see the slides from the lesson.
 |
Scattergraphs
- A scattergraph is a plot of two sets of data.
- Interpolation can be used to make an assumption about intermediate values.
- Graphs can be extended to predict future changes in the data.
The Straight Line
- By drawing a straight line, we can express the line
as a relationship
y = a + bx
Regression Line
- By drawing a straight line, we can plot a line of best fit.
Regression by Formula
By using a mathematical method called the "Method of Least Squares" it is possible to find the values of a and b for y = a + bx in order to find a regression line.
The Regression Formula
Limitations of Regression
- An assumption is made with the regression line that it is where it should be.
- You can not assume that the regression line is valid outside the range of the data.
- You can interpolate, but you can not extrapolate.
Copyright: All Content copyright of ©2000