Question

How do we interpret the coefficient ?

Answer 1

In mathematics, the term coefficient is a multiplicative factor of a variable in some form of expression , series. It is basically a number. Example in 10x ,the coefficient of x is 10.

Now in regression , coefficient plays a huge role. It's sign defines how the direction of relationship is between the independent and dependent variable. It tells how much the dependent variable is expected to change when the independent variable is increased by one.

Example- say in y= 6-10x , the coefficient is - 10. It explains that when the x is increased by one unit, then y is decreased by 10units. So we can see how the sign indicates the direction of relationship and also the coefficient shows by how much the dependent variable is changing with x.

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