Advantages of regression analysis

¨      Regression analysis is most applied technique of statistical analysis and modeling.

¨      It is highly valuable in economic and business research.

¨      It helps in establishing a functional relationship between two or more variables.

¨      It predicts the value of dependent variable from values of independent variable.

¨      We can calculate coefficient of co relation and coefficient of determination with help of regression coefficient.

¨      It tells the nature of the relationships.

¨      It determines Model Building Procedure.

¨      It is used to determine dependent variable (y)

¨      It helps to determine potential independent variable (x)

¨      It helps to collect relevant data.

¨      It helps to hypothesize the model form.

¨      It helps to determine fitting the model.

¨      It gives diagnostic check test for significance.

¨      In regression analysis data used to describe relationship between variables that are measured on interval scale.

¨      It is easy to use and applies to many situations.