Question

What is regression? How regression is used ? What regression indicate? How do we analyze regression? (In terms of coefficient, t stats, pvalue)? How do write an anlysis of a company using regression? What significat regression means ?

Answer 1

It is a technique used to determining the statistical relationship between two or more variables where a change in a dependent variable is associated change in one or more independent variables. It is used to examine the relationship between one dependent and one independent variable. After performing an analysis regression statistics can be used to predict the dependent variable when the independent variable is known.It indicates the strength of the relationship between one dependent variable (usually denoted by Y) and a series of other changing variables (known as independent variables).P-values and coefficients in regression analysis work together to tell you which relationships in your model are statistically significant and the nature of those relationship. The p-values for the coefficients indicate whether these relationships are statistically significant.The sign of a regression coefficient tells you whether there is a positive or negative correlation between each independent variable the dependent variable. The statistical significance indicates that changes in the independent variables correlate with shifts in the dependent variable.An estimated regression equation may be used for a wide variety of business applications, such as:

Measuring the impact on a corporation’s profits of an increase in profits.Understanding how sensitive a corporation’s sales are to changes in advertising expenditures.Seeing how a stock price is affected by changes in interest rates