Applications of linear regression, Basic Statistics

Linear regression is widely used in biological behavioral and social sciences to describe relationship between variables. It ranks as one of the most important tools used in these disciplines.

1.Medicine: As one example early evidence relating tobacco smoking to mortality and morbidity came from studies employing regression. Researchers usually include several variables in their regression analysis in an effort to remove factors that might produce spurious correlations. For the cigarette smoking example researchers might include socio economic status in additional to smoking to ensure that any observed effect of smoking on mortality is not due to some effect of education or income. However it is never possible to include all possible confounding variables in a study employing regression. For the smoking example a hypothetical gene might increase mortality and also cause people to smoke more. For this reason randomized controlled trains are considered to be more trustworthy than a regression analysis.

2. Finance: Linear regression underlies the capital asset pricing model, and the concept of using beta for analyzing and quantifying the systematic risk of an investment. This comes directly from the beta coefficient of the linear regression model that relates the return on the investment to the return on all risky assets.

Posted Date: 3/30/2013 2:38:24 AM | Location : United States







Related Discussions:- Applications of linear regression, Assignment Help, Ask Question on Applications of linear regression, Get Answer, Expert's Help, Applications of linear regression Discussions

Write discussion on Applications of linear regression
Your posts are moderated
Related Questions
Celia is a nurse in a geriatric ward.  She noticed that older persons in her care are having problems sleeping at night.  She decided to introduce non-pharmocologic ways of relaxat

what are the aims of education

Explain Bond discount The excess of the countenance worth of a bond over the price for which it is acquire or sold resulting from a disparity between the marketplace rate of inter

The manager of a large industrial plant is interested in investigating whether age has an effect on the leadership ability of employees. 66 employees were randomly selected, divide

journal entries of a loan swap with different currency

Q. What is Sample Population? Choosing a sample population is one of the most important factors in gathering statistical data because all of the claims will be based on the sam

1. Mention the characteristics of Statistics. Explain any two applications of Statistics.

explain all the nature of statistics

Geometric mean of index number of laspeyres and paasches = 229.5468 , while sum of their index number=480 find out laspeyre''s and paasche''s indices.

advantages and disadvantages of integrated economic statistics