Regression

Regression

What is regression analysis?

Regression analysis is a data modeling technique for examining the relationship between a dependent variable (outcome) and independent variables (predictors). Businesses leverage regression analysis primarily for forecasting and prediction.

 

What is the importance of regression analysis?

Regression analysis helps in identifying factors that impact a particular outcome the most and also in understanding how these factors interact with each other. This is useful for several business use cases such as sales forecast or inventory management that involve multiple rapidly changing variables.

 

What are the benefits of regression analysis?

  • Regression analysis helps in understanding how different variables impact a certain business outcome.
  • It can be used to analyze a wide variety of relationships.
  • It helps in forecasting opportunities and risks.
  • It can help detect outliers or anomalies and identify upcoming trends.
  • It removes the guesswork and empowers decision-making based on real data.
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