3.2 Regression Analysis
Regression analysis is a statistical technique used to estimate the mathematical relationship between a dependent variable, such as quantity demanded, and one or more explanatory variables, such as price and income. The dependent variable is the variable whose variation is to be explained. The explanatory variables are the factors that are thought to affect the value of the dependent variable.
We focus on using regression analysis to estimate demand functions. However, regression analysis is a powerful tool that is also used to estimate many other relationships of interest to managers. For example, it is possible to use regressions to estimate the relationships between cost and output or between wages and productivity. ...
Get Managerial Economics and Strategy, 2/e now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
