Regression Analysis And Simple Linear Regression

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Regression analysis:

Regression analysis is a technique used in statistics for investigating and modeling the relationship between variables (Douglas Montgomery, Peck, &
Vinning, 2012).

Simple linear regression:

Simple linear regression is a model with a single regressor x that has a relationship with a response y that is a straight line. This simple linear regression model can be expressed as y = β0 +β1+xε

whereβ the intercept 0 and β the slope 1 are unknown constants and ε is a random error component .

Multiple linear regression:

If there is more than one regressor, it is called multiple linear regression. In general, the response variable y may be related to k regressors, x1, x2,…,x k, so that y = β0 +β 1x1 +β 2x2 +…+ βkxk +ε …show more content…

It is also known as the coefficient of determination, or the coefficient of multiple determinations for multiple regression. It is the percentage of the response variable variation that is explained by a linear model.
R − squared = Explained variation
Total variation

R-squared is always between 0 and 100%. 0% means the model explains none of the variability of the response data around its mean. 100% indicates that the model explains all the variability of the response data around its mean.

Generally, the higher the R-squared, the better the model fits the data (Frost,

2013).

Analysis of variance (ANOVA):

Analysis of variance (ANOVA) is a collection of statistical models used in order to analyze the differences between group means and their associated procedures. In the ANOVA setting, the observed variance in a particular variable is partitioned into components attributable to different sources of variation. The following equation is the Fundamental Analysis-of-Variance Identity for a regression model.

6 Linear Regression Analysis on Net Income of an Agrochemical Company in Thailand.
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