Purchase Solution

Use of Simple-Linear and Multiple Regression Analysis

Not what you're looking for?

Ask Custom Question

1. Can you think of an example where analysis of simple-linear and multiple regression analysis can be used? How is regression analysis being used in the financial industry, or how should it be used to formulate strategies?
2. What are examples in which regression analysis is used for forecasting?
3. What is correlation analysis? How can correlation analysis be used in a business decision or examples specifically related to strategy formulation and implementation?
4. What are some primary and secondary sources of data that may be used in correlation and regression analysis?
5. What is the difference between correlation and causation? Give examples

Purchase this Solution
Solution Summary

This explains the use of simple-linear and multiple regression analysis and the difference between correlation and causation in approximately 1400 words.

Solution Preview

Q- Can you think of an example where analysis of simple-linear and multiple regression analysis can be used? How is regression analysis being used in the financial industry, or how should it be used to formulate strategies?

The Regression Analysis is the part of Statistics that analyzes the relationship between quantitative variables. It helps predict the reaction of a variable when a related variable varies. The objective here is to determine how the predicted or dependent variable y (the variable to be estimated) reacts to the variations of the predicator or independent variables.
The objective of Regression analysis is to build a mathematical model that will help make accurate predictions about the impact of variable variations.

It is obvious that in most cases there are more than one independent variables that can cause the variations of a dependent variable.

When building a regression model, if more than one independent variable is being considered, we call it a multiple regression analysis, if only one independent variable is being considered, the analysis is a simple linear regression.
In our quest for that model, we will start with the techniques that enable us to find the relatedness between two variables. When building a regression model, if more than one independent variable is being considered, we call it a multiple regression analysis, if only one independent variable is being considered, the analysis is a simple linear regression.

Example: there is more than one factor that can explain the changes in the volume of cars sold by a given carmaker. Among other factors, we can name the price of the cars, the gas mileage, the warranty, the comfort, the reliability, the population growth, the competing companies, and so on. But the importance of all those factors in the variation of the dependent variable is disproportional. So in some cases, it is more beneficial to concentrate on one factor versus analyzing all the competing factors.

A good and reliable business decision making is always founded on a clear knowledge on how a change in one variable can affect all the other variables that are in one way or another associated to it.
How will commercial banks react to a change in the interest rate by the Federal Reserve?
How does that change affect ...

Purchase this Solution
Free BrainMass Quizzes
Measures of Central Tendency

This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.

Know Your Statistical Concepts

Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.

Measures of Central Tendency

Tests knowledge of the three main measures of central tendency, including some simple calculation questions.

Terms and Definitions for Statistics

This quiz covers basic terms and definitions of statistics.

View More Free Quizzes
Related BrainMass Solutions

  • Simple and Multiple Regression

    Multiple Regression Analysis * The multiple regression analysis was done similarly as the simple regression analysis (Tools --> Data Analysis --> Regression), but multiple columns of independent variables were entered.

  • Simple Regressions and Multiple Regressions

    581659 Simple Regressions and Multiple Regressions What is simple linear regression? How is regression used to create equations and to make predictions? Should variables be strongly correlated in order to use one to predict the other?

  • Least-Squares Property and Regression Analysis

    This week we looked at regression analysis. What is the difference between a simple regression analysis and multiple regression? Please give examples. 1.

  • Understanding Regression: Linear Regression, Multiple Regression

    There are two WORD documents, and one Excel spreadsheet. This solution consists of details of performing a multiple linear regression analysis using Excel.

  • Develop a multiple linear regression model & compare

    414052 Develop a multiple linear regression model and explain how does this compare with simple regression. Develop a multiple linear regression model.

  • simple linear regression models

    Please look at all tabs in excel sheet for different linear regression models and the overall multiple regression model. Thanks This posting contains solution to following regression analysis problem.

  • Making a Simple Regression Into a Multiple Regression

    212295 Simple analysis - You may add any second variable You may add any second variable.Please find attached a simple regression analysis, and make it a multiple regression analysis example(i.e., with two independent variables).

  • Benefit of Developing and Examining Models

    Please provide a simple linear regression model and define each variable used. c.) Describe multiple regression analysis and discuss potential uses for this model. a.)

  • Managerial Reports: Alumni

    Use the multiple linear regression analysis to develop an estimated regression equation that could be used to predict the alumni-giving rate given the graduation rate, the percentage of classes with fewer than 20 students, and the student-faculty ratio

  • Simple Linear Regression and Multiple Regression.

    357632 Simple Linear Regression and Multiple Regression. Simple Linear Regression and Multiple Regression. I'd like to ask whether you think multiple regression (the use of more IV's) is always better than simple regression? Why or why not?

View More Related Solutions