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Linear Regression Essay

1111 words - 5 pages

Linear regression analyzes the relationship between an independent and dependent variable to find the line that best fits between them. It has been used to predict a continuous dependent variable from a number of independent variables. This report will discuss the different tools used for such analysis and will also describe histograms and bivariate plots. It will also discuss the value of a slope which is shown as the ratio of change in the y-value over the change in the x-value. Lastly, this report will show how linear regression can be utilized in the management environment.

Linear regression is an independent variable x and those values which are fixed, and a dependent ...view middle of the document...

The chart below (wadsworth, 2010) show the grade point average and the SAT scores that correlate with the scores.
[pic]
The graph shows the correlation coefficient for grade point average correlation.
[pic]

References

Macmillan Dictionary of Toxicology. (1999). Linear Regression. Retrieved August 3, 2010, from Macmillan Dictionary of Toxicology: http://140.234.17.9:8080/EPSessionID=e7418cc95a4fbcb49a9ac8e6da13cf96/EPHost=credoreference.com/EPPath/entry.do?id=974956

Macmillan Reference Ltd. (2000). Correlation Coefficient. Retrieved August 3, 2010, from Macmillan Reference Ltd: http://140.234.17.9:8080/EPSessionID=e7418cc95a4fbcb49a9ac8e6da13cf96/EPHost=credoreference.com/EPPath/entry.do?id=973643

wadsworth. (2010). The Pearson Product Moment Correlation Coefficient. Retrieved August 3, 2010, from wadsworth.com: http://www.wadsworth.com/psychology_d/special_features/ext/workshops/correlation.html

What is the slope intercept formula and how is it beneficial in a management environment?      The slope intercept formula could be defined as” the equation of each line with y-intercept (0, b) and slope m is y= mx +b (Dugopolski, 2002). In addition to that, the formula to the slope intercept is:
“Formula
Slope Intercept Form:
Slope Intercept Form = y = mx + c
where
c = y-intercept of the line,
m = Slope of the line

Slope Intercept Form Diagram
[pic] “(Slope Intercept Form Tutorial, para.).
In a management perspective, this particular formula could be used for a variety of reason. First, graphing income within a company is an example of how management could use the intercept slope formula. For example by taking the number of years and the net income to show how a business has progressed over the years.

|Year |Net Income |
|2008 |991352.1 |
|2007 |896236.3 |
|2006 |686833.1 |
| | |
|Regression Statistics |  | | | | |
|Multiple R |0.977319989 | | | | |
|R Square |0.95515436 |Goodness of Fit >= 0.80 | | | |
|Adjusted R Square |0.910308721 | | | | |
|Standard Error |46657.63567 | | | | |
|Observations |3 | | | | |
| | | | | | |
|ANOVA ...

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