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In the statistics, regression analysis is the method by which the dependency of variables and subsequent changes in the value are measured. It is the study of examining the changes in the dependent variable when one of the independent elements is altered, the rest being in fixed positions. There are many techniques for scrutinizing these transformations.

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Three models of regression:

  • The dependent parameter.
  • The independent parameter.
  • The unspecified variable.

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Dependent and Independent variables:

  • Dependent variables-

As the name suggests, these elements fully rely on other factors. The changes that occur in dependentvariables are proportionate to that of theothers.

  • Independent variables-

These elements are independent and do not vary with other factors that arebeing measured.

Regression analysis: Its uses:

  • It helps to understand how the variables relateto each other.
  • Using regression analysis, the value of the dependent factors can be predicted from the independent factors.
  • The tool of regression analysis is considered highly important in business and financial research work.

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