Linear regression is a statistical method used to understand the relationship between an outcome variable and one or more explanatory variables. It works by fitting a regression line through the ...

Simple linear regression is commonly used in forecasting and financial analysis—for a company to tell how a change in the GDP could affect sales, for example. Microsoft Excel and other software ...

Linear Regression vs. Multiple Regression Example Consider an analyst who wishes to establish a relationship between the daily change in a company's stock prices and daily changes in trading volume.