From the course: Excel: Economic Analysis and Data Analytics

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Regression analysis in economics

Regression analysis in economics - Microsoft Excel Tutorial

From the course: Excel: Economic Analysis and Data Analytics

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Regression analysis in economics

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- [Instructor] Let's talk about regression analysis. You might not be familiar with the term, but regression analysis is a very powerful business tool that you can use to make predictions and forecasts for your firm. In particular, a regression is simply a statistical model. In its most basic form, a regression is defined by the equation you see here, y = ax + b. What this is simply saying is that our dependent variable, Y, is driven by our independent variable, X, plus a Y intercept, B. So we might think about this in, say, a situation trying to figure out how long it'll take to drive to California from somewhere else in the country. The time to reach California is going to be based on two factors, how fast we're traveling and where we start from. A is the speed at which we are driving. X is the number of hours it'll take us to reach California. And B is where we start from. It takes longer to reach California starting…

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