What is it?
Regression analysis is a statistical tool for investigating the relationship between variables. For instance, is there a causal relationship between price and product demand?
Regression analysis is often talked about alongside correlation analysis and as such it’s often quite difficult to know which is which and what the difference is. Essentially, regression analysis identifies the relationships between two variables and plots the course of that relationship which can then be predicted into the future, whereas correlation analysis explores the strength of that relationship.
Regression analysis is a mainstay of economics but has become an increasingly important technique in other fields such as law and government ...