Regression Analysis

Regression analysis is a statistical tool that describes a mathematical relationship between a dependent variable and one or more independent variables.

In regression analysis, a regression equation is determined based on the line of best fit– a line that best fits the data points plotted in a graph. This line is also called the regression line. The algebraic equation for the regression line is called the regression equation. It is represented as:

In the equation,  is the dependent variable, x is the independent variable, b₀ is the y-intercept, and b₁ is the slope of the regression line.  is the estimated value of y. It is the value of y obtained using the regression line. It is not generally equal to y from data.

The regression equation can be used to calculate the dependent variable for a specific value of the independent variable.

This text is adapted from Openstax, Introductory Statistics, Section 12.3 The Regression Equation.