LINEAR REGRESSION

Correlation Vs. regression

Correlation tells us about Regression tells us about
the strength (and shape) the nature of the function
of the relationship relating the two variables.
between two variables.

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Regression line
- Regression analysis fits a straight
line to the relationship between the
two variables. The line that is fit to
the relationship has certain
properties.

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Regression line
✗ It is as close as possible, in a specific average least
squares sense, to all of the points.
✗ Identifies the "central tendency" of the relationship
between the two variables, just as the mean identifies the
"central tendency" of a single variable.
✗ Provides a simplified description --- a model --- of the
relationship between the two variables.
✗ Gives us a way to predict values for the response variable
from values of the predictor variable.

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3 major uses for regression analysis

1. Determining the strength of predictors.

2. Forecasting an effect

3. Trend forecasting

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Regression models
Describe the relationship
between variables by fitting a
line to the observed data.

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Assumptions of linear regression
1. Your DV should be measured at the continuous level
2. Your IV should also be measured at the continuous level
3. There needs to be a linear relationship between the two
variables
4. There should be no significant outliers.

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Assumptions of linear regression
1. You should have independence of observations
2. Your data needs to show homoscedasticity
3. you need to check that the residuals (errors) of the
regression line are approximately normally distributed

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Simple linear regression
It is used to estimate the relationship between 2
quantitative variables. You can use simple linear
regression when you want to know:

✗ How strong the relationship is between 2 variables.

(e.g. relationship between rainfall and soil erosion)
✗ The value of the DV at a certain value of the IV. (e.g.
amount of soil erosion at a certain level of rainfall)

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Multiple linear regression
✗ Multiple linear regression establishes the relationship
between independent variables (two or more) and the
corresponding dependent variable. Here, the independent
variables can be either continuous or categorical. This
regression type helps foresee trends, determine future
values, and predict the impacts of changes.

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