REGRESSION

ANALYSIS

BSECE3A
GROUP 5
Oblepias,Rica Mae s.
Rongcales, Renzo
Salvan, Laira Mae S.
Definition of Regression Analysis

Regression analysis is a set of statistical methods used for the

estimation of relationships between a dependent variable and one
or more independent variables. It can be utilized to assess the
strength of the relationship between variables and for modeling
the future relationship between them. It used when predicting the
behavior of a variable.
In regression analysis, it is important that the independent and
dependent variables are correctly identified to make correct
conclusions.

HOW CAN THE INDEPENDENT AND DEPENDENT

VARIABLES BE IDENTIFIED?
DEPENDENT VARIABLE (Response Variable)
A dependent variable is a value that is affected when the value
of the independent variable changes.

Example: The Effect of Room Temperature on the Attention

Span of Students
Dependent Variable: The attention span of students.

The attention span of students is affected whenever there is a

change in independent variable, which is the room temperature.
INDEPENDENT VARIABLE (Predictor)
An independent variable is a value that the researcher can freely
change to test its effect on the dependent variable.

Example: The Effect of Room Temperature on the Attention

Span of Students
Independent Variable: Room Temperature

The researcher can freely change the temperature of the air

conditioning unit every day to see its effect on the attention span
of the students.
 Types of Regression Analysis

Simple Regression Multiple Regression

One independent variable Two or more independent
is involved. variable are involved.
 Simple Regression
• -is a statistical method that allows us
to summarize and study relationships
between two continuous variables;
• One variable, denoted x, is regarded
as predictor
• The other variable, denoted y, is
regarded as the outcome or
dependent variable
What is Multiple Regression?
-a statistical method used to predict
the value of a dependent variable based
on the values of two or more
independent variables. (Predictors)
Multiple Regression

For example:
y= Price of the house
x=Square feet increases
z=Number of bedrooms
Multiple Regression

Variable Selection
•Less Correlated
•Descriptive
•Related
Multiple Regression
• 
Formula
• y=
To find m1, m2 and b:
Multiple Regression
Housing Cost

y=112.5(2005)+10500(3)-26500
y=230 562.5
References
• https://corporatefinanceinstitute.com/resources/knowledge
/finance/regression-analysis/
• https://www.youtube.com/watch?v=_cySxn5134c
• Online.stat.psu.edu