From the course: Everyday Statistics, with Eddie Davila

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The importance of regression analysis

The importance of regression analysis

- [Instructor] The geeks have won the war. Analytics and statistics are part of every executive suite. With their victory, the numbers geeks spring, means and medians, standard deviations, and pie charts. We can handle that. Big data and infographics? Sure, we can handle that too. But how about linear regression analysis? Not to worry. Let's establish some of the basics. Linear regression analysis is a statistical attempt at understanding the relationship between two variables. For example, what's the relationship between the miles on a certain type of car and the value of the car? How much value does my car lose every time I drive 500 miles? Linear regression would attempt to try and estimate the car's value knowing only the mileage on the car. We would call mileage the predictor and put that on the X axis. And the car's value would be the outcome. Value would be on the Y axis. After collecting some data, the data…

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