The importance of regression analysis

- [Instructor] The geeks have won the war. … Analytics and statistics are part of every executive suite. … With their victory, the numbers geeks spring, … means and medians, standard deviations, and pie charts. … We can handle that. … Big data and infographics? … Sure, we can handle that too. … But how about linear regression analysis? … Not to worry. … Let's establish some of the basics. … Linear regression analysis is a statistical attempt … at understanding the relationship between two variables. … For example, what's the relationship between the miles … on a certain type of car and the value of the car? … How much value does my car lose every time … I drive 500 miles? … Linear regression would attempt to try and estimate … the car's value knowing only the mileage on the car. … We would call mileage the predictor and put that … on the X axis. … And the car's value would be the outcome. … Value would be on the Y axis. … After collecting some data, the data would be plotted … on a scatter chart. …