Linear regression

Regression analysis linear regression is a statistical analysis method that finds relationships between variables. It helps us to understand the relationship between input and output numerical variables.

In this method, it is important to determine the dependent variables. For example, the value of the house (dependent variable) varies based on the size of the house; that is, how many square feet its area is (independent variable). The value of the house varies based on its location. Linear regression techniques can be useful for prediction.

Linear regression is used when the response is a continuous variable. The following diagram clearly shows how the linear regression for one variable work. The price of the house varies according to its size and is depicted in the following diagram:

Linear regression can be applied to the following areas:

• Marketing
• Pricing
• Promotions
• Analyzing consumer behavior