Regression - Analysis By Example

One day’s sales don't directly dictate the next.

Once you run the numbers, you don't just take the result at face value. You check: R-Squared ( R2cap R squared Regression Analysis by Example

Is the relationship real or just a fluke? A p-value under 0.05 generally means your result is statistically significant. 3. Adding Complexity (Multiple Regression) Temperature isn't the only factor. You might add: X2cap X sub 2 : Is it a weekend? (0 for no, 1 for yes). X3cap X sub 3 : Is there a discount running?Now your model looks like: 4. The "Golden Rules" (Assumptions) One day’s sales don't directly dictate the next

The relationship actually looks like a line, not a curve. A p-value under 0

Regression Analysis is essentially the art of finding the "best-fit" story between variables. If you’re looking to master it or explain it effectively, The Concept: Predicting Coffee Shop Sales