Question
Download Solution PDFRegression analysis uses to study .....
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFThe correct answer is - The causal relationship between two or more variables
Key Points
- Regression analysis
- It is a statistical tool used to analyze the relationship between variables.
- The primary goal of regression analysis is to determine whether there is a causal relationship between one dependent variable and one or more independent variables.
- This technique helps in understanding how the dependent variable changes when the independent variables are varied.
- Key focus on causality
- Unlike correlation, regression analysis aims to establish a cause-and-effect relationship.
- For instance, determining how changes in advertising expenditure (independent variable) affect sales (dependent variable).
Additional Information
- Types of Regression Analysis
- Simple Linear Regression
- Examines the relationship between one dependent variable and one independent variable.
- Example: Studying how temperature (independent variable) affects ice cream sales (dependent variable).
- Multiple Linear Regression
- Involves one dependent variable and two or more independent variables.
- Example: Analyzing how factors like advertising budget, price, and product quality influence sales.
- Logistic Regression
- Used when the dependent variable is categorical (e.g., binary outcomes like "yes" or "no").
- Example: Predicting whether a customer will make a purchase based on their browsing history.
- Simple Linear Regression
- Key Assumptions of Regression Analysis
- The relationship between the dependent and independent variables is linear.
- The residuals (errors) are normally distributed and independent.
- No significant multicollinearity exists among the independent variables.
- Applications of Regression Analysis
- Used in economics to forecast trends like GDP growth or inflation rates.
- In marketing, it helps determine the impact of various factors on sales or customer behavior.
- In healthcare, it is used to study the relationship between risk factors and diseases.
Last updated on Jun 26, 2025
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