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A Discussion of a Regression Analysis

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Questions: What are the requirements that must be met for a regression analysis? What happens if these requirements are violated? Why is the analysis of residuals important?

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Solution Summary

This response is comprised of about 405 words and discusses the overall purpose of utilizing a regression analysis, with mention of the requirements which need to be satisfied and how residuals are incorporated into this subject.

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Regression analysis is used primarily for the purpose of prediction. The goal in regression analysis is to develop a statistical model that can be used to predict the values of a dependent variable based on the values of at least one independent variable. For example, the of bushels of corn per acre (as dependent variable) could be predicted using various amounts of fertilizer in pounds per acre (as independent variable) using an appropriate regression model provided that, some of the requirements for developing such a regression model are fulfilled.

The basic requirements that must be met for developing such a regression model are ...

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