Here, the Savings in $ is the dependent, response, or outcome variable, whereas the Income in $ is the independent, explanatory, or predictor variable. In addition, regression analysis is quite useful in finance.įor example, consider the table below showing income and savings in columns A and B. Thus, we can numerically assess how the fluctuations in the independent variables affect the dependent variable. In simple terms, it evaluates the relationship between one dependent variable with one or more independent variables.Īlso, it helps determine the strength of the estimated relationship and defines the future relationship between the variables. Regression analysis in Excel is a group of statistical methods.
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