Question

What is linear regression and how is it used as a statistical tool? Would this be a statistical test that you would use at your organization.

Answer 1

Linear regression is the statistical technique in which we find the predicted values of dependent variable based on the independent variable by using linear relationship between the given two variables. We use this technique as a statistical tool for finding the predicted value. This would be a statistical test which we can use at our organization for prediction purpose or inference regarding the dependent or response variables based on the independent or explanatory variables. There are several situations in various industries or businesses where we need to use least squares linear regression techniques, because we need to make inferences or predictions in businesses for policy making decisions.