Regression Analysis Research Paper Example | Topics and Well Written Essays - 1000 words

Regression Analysis - Research Paper Example It is an effective tool of mathematical analysis, which allows estimation and evaluation to the nearest proximity compared to the past. It also allows predicting a certain future value through comparison and combination of two or more variables. Usually, hypotheses are taken up for case estimation and evaluation which involve plotting of various variables dependent on the time factor. Regression models can be both linear and non linear in nature. Response variables are generated by the comparison of numerous variables that are involved in the computational process. Response variable is of quantitative nature and derived as result of other variables tested and compared amongst each other. Regression analysis is used for predicting certain event (mostly the dependent variable), its outcome in terms of numerical percentage and value in combination with other variables (independent) which might be elements of the present time (Seber & Lee, 2012). Equations are derived which contain both the dependent and independent variables, against some constant. Regression analysis equations are linear in nature. The function so obtained is a straight line, in form of linear equation. Often the natures of the dependent variables have direct impact on the kind of final linear equation being yielded. In case of the dependent variable being dichotomous, the logistic form of regression is handy in such cases for evaluation of the linear plots. When multiple independent variables are up against one dependent variable, it constitutes standard linear multiple regression (Hill & Lewicki, 2006). In such cases, the single dependent variable can be compared one on one against the respective independent variable. Numbers of variables are set against each other and each of them affects the other directly. For example in case of stock exchange the stability of and sound running of stocks are dependent on various external factors, which can include the economic condition, the security and saf ety, any major political decisions in the governmental corridors. Any unexpected decisions are ascribed to the rise or fall in the stocks value. In this case, the stock market is one variable which is dependent on number of variables that are aforementioned. Each of these variables, both dependent and independent are plotted against a graph with x-axis representation and y-axis along a straight linear line. Stocks standing = Stable Market, Political decisions, other variables plus a Constant. For any economic factor indication, the variables that can be taken in to account include the net flow of income at a particular instance of time, the dependent variables on the fixed amount, the surplus amount in form of the revenue generated and the possible depreciation of the capital. All these are equated and compared against each other in form of plot to estimate the future trends. Mostly, it involves number of variables being operated upon; however at a particular instance of time when o ne variable is under observation, it constitutes a simple regression analysis scenario. For example in case of an individual’s average spending against his profession, his resources, his requirements, all these alone make for attributes which are evaluated and analyzed for a certain desired future scenario through the regression tool of estimation. If for a given scenario, more number of