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
Examine the distributions of weight and height. Are there any outliers? If so deal with them appropriately. Create a new variable that divides weight into groups. Produce a tabl

How do I find the mean when the question is in a table format?2 rows with 8 columns, Do I name them X and Y then do them?

54% of teens own a music player, the probability that both the parent and the teen own music player is 0.264, what is the probability that parent owns music player given that teen

comulativefrequencydistribution

#multiple linear regression of y on x1 & x2 from data relating to 3 variables i.e y=4,6,77,9,13,15 x1=15,12,8,6,4,8 x2=30,24,20,14,10,4

3DP, a Luxembourg-based company plans to develop and sell highly specialized 3D printers. The cost of product development is estimated at EUR 50,000.-, irrespective of whether or n

jay can remember only the first 4 digits of his friends phone number. he also knows that the number has 7 digits and the last digit is not a zero. if jay were to dial all of the po

what is the difference between HISTORIGRAMS and HISTOGRAMS?

Limitations of mean

Susan’s proposed budget for 2011 includes a substantial repayment of the bank loan. If the repayment occurs, is the firm likely to break even in 2012? Explain.