Summary Variables, Regression Analysis, Dependent Variable, independent Variable, Simple Linear Regression, Multiple Regression, Correlation Analysis, Scatter Diagram, Coefficient of Determination, Confidence Interval, Detecting Outliers,

Simple Linear
Regression

, What we will do
Today we will develop the regression model
and look at this as if you have to do
everything by hand
Subsequently, we will show how using
excel greatly simplifies everything
I will expect you to do simple things by
hand just to see that you understand what is
going on
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, Regression Establishes
Relationships Between Variables
Managerial Decisions are Often Based on
the Relationship Between Two or More
Variables.
RegressionAnalysis - Statistical Procedure
Used to Develop a Mathematical Equation
Showing How Variables are Related.


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, Basic Definitions
DependentVariable - The Variable Being
Predicted or Explained. Denote as y.
Example: y = Income or your grade
IndependentVariable(s) - The Variable(s)
that is Used to Predict or Explain the
Dependent Variable. Denote as x.
Example: x = Years of Education or your
performance on tests


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