Steps to Calculate the Regression Coefficient
Before calculating regression coefficients for finding the best-fitted line, it is important to determine if the variables have a linear relationship. This can be done by interpreting the value and using correlation coefficient.
- Apply the formula a to determine the coefficient of X: a= n (∑xy)−(∑x).(∑y) / n(∑x2)−(∑x)2
- To obtain the constant term the formula is: b = (∑y)(∑x2)−(∑x).(∑xy) / n(∑x2)−(∑x)2
- Calculate regression coefficients by entering them into the Y = aX + b equation and visually represent the regression line with a scatter plot.
Regression Coefficients
Regression coefficients in linear regression are the amounts by which variables in a regression equation are multiplied. Linear regression is the most commonly used form of regression analysis. Linear regression aims to determine the regression coefficients that result in the best-fitting line. These coefficients are helpful when estimating the value of an unknown variable using a known variable. This article explains regression coefficients and their formulas and provides related examples.
Table of Content
- What are Regression Coefficients?
- Regression Line
- Formula for Regression Coefficients
- Regression Coefficients Interpretation
- Steps to Calculate the Regression Coefficient
- Regression Coefficients in Different Types of Regression Models
- Solved Examples on Regression Coefficients