Regression: Forecasting Using Explanatory Factors

Abstract

This comprehensive technical note explains linear regression. It is indended for students with no prior knowlede of the topic. It is devided into nine sections, which may be assigned separately: 1. The simple linear model, 2. Fitting the model using least squares, 3. Important properties of the least-squares regression line, 4. Summary regression statistics, 5. Assumptions behind the linear model, 6. Model-building philosopy, 7. Forecasting using the linear model, 8. Using dummy variables to represent categorical variables, and 9. Useful data transformations. The sections correspond to stand-alone notes also available through Darden Business Publishing.

Keywords: data analysis, regression analysis, statistical analysis