Uses of Regression

USES OF REGRESSION

Benefits of using regression analysis are as follows:

1. It indicates the significant mathematical relationship between independent variable (X) and dependent variable( Y ). (i.e) Model construction

2. It indicates the strength of impact (b) of independent variable on a dependent variable.

3. It is used to estimate (interpolate) the value of the response variable for different values of the independent variable from its range in the given data.  It means that extrapolation of the dependent variable is not generally permissible.

4. In the case of several independent variables, regression analysis is a way of mathematically sorting out which of those variables indeed have an impact (It answers the questions: Which independent variable matters most? Which can we ignore? How do those independent variables interact with each other?