Regression Analysis Quiz

The purpose of regression analysis is to understand the relationship between variables and predict the value of one variable based on another variable. Examples of its application in business decision-making include determining the best location for a new store and studying the effectiveness of advertising dollars in increasing sales volume.

The variable to be predicted is called the dependent variable, sometimes referred to as the response variable. The value of this variable depends on the value of the independent variable, sometimes called the explanatory or predictor variable.

The purpose of regression analysis in predictive modeling is to investigate the relationship between a dependent (target) and independent variable(s). It involves univariate, bivariate, and multivariate data analysis.

<p>Univariate data consists of a single variable and is significant in regression analysis for understanding the characteristics and distribution of the dependent or independent variable.</p> Signup and view all the answers

<p>Regression analysis is used in forecasting and time series modeling for finding the causal effect relationship between variables. It aims to identify the causal effect relationship between the dependent and independent variables.</p> Signup and view all the answers