2. INTRODUCTION
• Regression is Stepping Back or Going Back.
• The Term Regression was designed by
Sir Franscis Galton
• Regression analysis is the most often
applied technique of statistical analysis and
modeling.
3. • If two variables are involved, the variable
that is the basis of the estimation, is
conventionally called the independent
variable and the variable whose value is to
be estimated+ is called the dependent
variable.
• The dependent variable is variously
known as explained variables,
predictand, response and
endogenous variables.
• While the independent variable is known as
explanatory, regressor and exogenous
variable.
4. Definition
The RegressionAnalysis is the measure of the average relationship
between two or more variables in terms of the original units of the
data.
The regression technique is primarily used t o :
•It is used in all those fields where two or more relative variables are
having the tendency to go back to the average.
•It predicts the values of dependent variables from the value of
independent variables.
5. Types of Regression Analysis
There are 3 types regression analysis
1. Simple and Multiple
2. Linear and Non Linear
3. Total and Partial
6. Simple and Multiple
• The regression analysis confined to the study
of only two variables at a time is termed as
Simple Regression.
• The regression analysis for studying more than
two variables at a time known as Multiple
Regression
7. Linear and Non Linear
• In Linear Regression, the regression is a
straight line.
• On the other hand in on – Linear regression,
the regression is not a straight line.
8. Total and Partial
• In total regression, all the important variables
are considered.
• But in the case of partial regression one or
more variables are considered but not all, thus
excluding the influence of those not found
relevant for a given purpose.
10. Graphic Method
• Under this method the points are plotted on a
graph paper representing various pairs of
values of the concerned variables.
• These points give a picture of the scatter
diagram with several points scattered around.
• A regression line may be drawn in between
these points either by free hand or b a scale
rule in such a way that the squares of the
vertical or the horizandal.
11. Algebraic Method
• Under algebraic method, the equation of the
line is derived by some suitable method.
• This equation can be of a straight line or of a
parabola depending upon the scatter points and
the suitability for the purpose in hand.