Page 260 - F2 - MA Integrated Workbook STUDENT 2018-19

Chapter 12

Linear regression

Linear regression performs a similar role to that of the high low method, but it uses
mathematical equations that examine all data in the series in order to improve
accuracy.

Consider the equation of a straight line:

y
ion

x
i

y = a + bx

where: y = dependent variable

x = independent variable

a = intercept on y-axis

b = gradient of the line

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