REGRESSI

ON
ANALYSIS

PRESENTED BY
UMANG MEHRA
AKSHAY KAPOOR
RAVI ARORA

REGRESSION
The term Regression means stepping
back towards the average. It was first
used by biometrician, Sir Francis Galton
(1822-1911), in connection with the
inheritance of stature.
Regression is the measure of the average
relationship between two or more variables
in term of the original units of data. In
regression analysis with two variable one is
known as Independent variable and other is
known as Dependent variable.

DEPENDENT AND INDEPENDENT

VARIABLE
An independent variable is exactly what it sounds like.
It is a variable that stands alone and isn't changed by
the other variables you are trying to measure. For
example, someone's age might be an independent
variable.
A dependent variable is what you measure in the
experiment and what is affected during the
experiment. The dependent variable responds to the
independent variable. It is called dependent because it
"depends" on the independent variable.
In other words we can say that simple regression is
linear nature of relationship between two variables X
and Y.

REGRESSION ANALYSIS
In statistics, regression analysis is a statistical process
for estimating the relationships among variables.
More specifically, regression analysis helps one
understand how the typical value of the dependent
variable changes when any one of the independent
variables is varied, while the other independent
variables are held fixed.
Regression analysis is widely used for prediction and
forecasting.
Regression analysis is also used to understand which
among the independent variables are related to the
dependent variable, and to explore the forms of these
relationships.

TECHINIQUES FOR
REGRESSION
Linear Regression
Ordinary Least Square Regression.
For Parametric values.
Regression Techniques can be applied to
non parametric values also. Nonparametric
regression refers to techniques that allow
the regression function to lie in a specified
set of functions, which may be infinitedimensional.

REGRESSION MODEL
Regression models involve the following
variables:
The unknown parameters, denoted as .
The independent variables, X.
The dependent variable, Y.
A regression model relatesYto a function
ofXand.

LINEAR REGRESSION
Linear regression attempts to model the
relationship between two variables by fitting
a linear equation to observed data. One
variable is considered to be an explanatory
variable, and the other is considered to be a
dependent variable.
A linear regression line has an equation of the
form Y = a + bX, where X is the explanatory
variable and Y is the dependent variable. The
slope of the line is b, and a is the intercept
(the value of y when x = 0).

LEAST SQUARE METHOD

Least square regression is a method for finding a line

that summarizes the relationship between the two
variables, at least within the domain of the explanatory
variable .

r(i.e. the mean and SD ofX, the mean and SD ofY, and
the Pearson correlation betweenXandY.) The least
squares regression line is represented by the equation
PREDICTED Y=a+b X

where the slopeband interceptaare calculated in the

following order

REGRESSION COEFFICIENT

The Regression coefficient is defined as the

covarianceofxandydivided by thevarianceof
the independent variable,xory.
In other words, the regression coefficient of Y on X
is defined as the covariance of X and Y divided by
the variance of independent variable.
We observe that both the regression coefficients
must have the same sign and that the sign is
determined byr. The valuer2is referred to as
thecoefficient of determination. The value1 r2is referred to as thecoefficient of
nondetermination

ABOUT MARUTI
Maruti Suzuki India Limited formerly known as
MarutiUdyog Limited, is an automobile
manufacturer in India. It is a subsidiary of
Japanese automobile and motorcycle manufacturer
Suzuki.
Maruti Suzuki manufactures and sells a complete
range of cars from the entry level Maruti 800
(discontinued), Alto, to the hatchback Ritz, Celerio,
A-Star, Swift, Wagon R, Zen and sedans DZire,
Ciaz, Kizashi and SX4, in the 'C' segment Eeco,
Omni, Multi Purpose vehicle Suzuki Ertiga, S-Cross
and Sports Utility vehicle Grand Vitara.

HYPOTHETICAL PROBLEM AND

SOLUTION

Question: By seeing the following data do

analysis of the future 3 months of the swift
i.e. sep.2015, oct.2015, nov.2015.Find
Regression Coefficient and make graph of
the future demand of those three months
using Regression equation.

DATA

SOLUTION
Here,
X=no. of months
Y=no. of swift sales
here,
Y is dependent on X

SOLUTION

CONT
Y=a+b.X
Y = 16551.5 + 159.X
Sale in the month of sep 2015 will be
Y=16651.5 + 159(12)

=18560
Sale in the month of oct 2015 will be
Y=16651.5 + 159(13)

=18719
Sale in the month of nov2015 will be
Y=16651.5 + 159(14)

=18878

GRAPHICAL
REPRESENTATION
Y
25000

20000
f(x) = 158.98x + 16392.47
R = 0.08

15000

Y
Axis Title

Linear (
10000

5000

0
0

6
Axis Title

10

12

14

Y)

OUTCOME

After applying the regression equation to the above

data of swift we can estimate the further sales of the
car and can observe the cars demand with respect to
time and can manage the production of the car. Result
came ot that the production of the car in sept. 2015
will be 18560 ,oct. 2015 will be 18719 , nov. 2015 will
be 18878 . According to regression to the two variables
that is sales and time in months on which sales is
dependent . After applying the regression equation the
equation came out to be Y=16551.5+159X . Out of
which we can determine the further sales of the swift
and produce and manage the marketing , production
and sales on the same.

THANK YOU