Define: Linear Regression

UK Accounting Glossary

Definition: Linear Regression



Advertisement



Full Definition of Linear Regression


In statistics, linear regression is a technique for estimating the value of the dependent variable from a set of one or more independent variables. As the name linear regression implies, the dependent variable is assumed to have a linear relationship with any independent variables. The mechanics of performing a simple linear regression can be handled with ease by a desktop computer running appropriate statistics software. Nevertheless, performing a linear regression requires some training in statistics, because without an understanding of the limitations to linear regression techniques incorrect conclusions can be made on the basis of the model. A useless linear regression can result if, for example, the sample data used violate assumptions upon which the technique depends. Linear regression was originally developed with scientific applications in mind, but today linear regression and related techniques have important application to a variety of business and economics contexts. For example, portfolio managers and marketing professionals are among the business specialists that make frequent use of linear regression models.


Advertisement




Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/linear-regression/
Modern Language Association (MLA):
Linear Regression. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. March 28, 2020 https://payrollheaven.com/define/linear-regression/.
Chicago Manual of Style (CMS):
Linear Regression. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/linear-regression/ (accessed: March 28, 2020).
American Psychological Association (APA):
Linear Regression. PayrollHeaven.com. Retrieved March 28, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/linear-regression/

Definition Sources


Definitions for Linear Regression are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 10th February 2020.