Question

What is the purpose of Linear Regression? How does it differ from basic correlation? When is it appropriate for use? Describe a study for which you would use Linear Regression for statistical analysis.

Answer 1

ANSWER:

Regression and Correlation are essentially related and regularly make confusion.Correlation gives us the degree of the linear relationship between two factors or we can say Correlation says how much two factors are linearly related.

For Example, the correlation among's Income and consumption is certain implying that anybody having high salary will have high uses likewise, On the other hand, the correlation among's cost and request is negative importance higher the value bring down thedemand.

Regression by one way or another attempts to manufacture the practical connection between two variables.Let's comprehend by the above model.

Assume the cost of any item is $ 50, would correlation be able to disclose to you the interest for that product? NO, connection won't, it just tells whether they are connected or not and how much.The answer to this inquiry is given by relapse which attempts to assemble a model with the goal that we can anticipate one variable from some other related variable.

For instance Demand = a + m Price +error

or on the other hand Expected (Demand) = a + m Price where "a" is block or the expected demand of thing when Price of thing is 0 and m is the incline or the unit change in Demand when we bring a unit change in Price.