Applications of linear regression, Basic Statistics

Assignment Help:

Linear regression is widely used in biological behavioral and social sciences to describe relationship between variables. It ranks as one of the most important tools used in these disciplines.

1.Medicine: As one example early evidence relating tobacco smoking to mortality and morbidity came from studies employing regression. Researchers usually include several variables in their regression analysis in an effort to remove factors that might produce spurious correlations. For the cigarette smoking example researchers might include socio economic status in additional to smoking to ensure that any observed effect of smoking on mortality is not due to some effect of education or income. However it is never possible to include all possible confounding variables in a study employing regression. For the smoking example a hypothetical gene might increase mortality and also cause people to smoke more. For this reason randomized controlled trains are considered to be more trustworthy than a regression analysis.

2. Finance: Linear regression underlies the capital asset pricing model, and the concept of using beta for analyzing and quantifying the systematic risk of an investment. This comes directly from the beta coefficient of the linear regression model that relates the return on the investment to the return on all risky assets.


Related Discussions:- Applications of linear regression

Allocation surrounding to accounts, Allocation surrounding to accounts An a...

Allocation surrounding to accounts An aspect of a lump-sum appropriation that is specific for expenses by particular government models and/or for particular requirements, actions,

Iasb and fasb, Significant factors of financial accounting In financial...

Significant factors of financial accounting In financial accounting, The IASB and FASB considered that reconsidering all the ideas would not be a practical use of their underst

Probability, A certain manufactured item is visually inspected by two diffe...

A certain manufactured item is visually inspected by two different inspectors. When a defective item comes through the line, the probability that it gets by the first inspector is

Explain the financial accounting., Explain the Financial Accounting. Und...

Explain the Financial Accounting. Under the Financial Accounting System the producing of economic purchase are done in the Cash and Publication, in other Bookkeeping as Sales, P

What is b2b, Definition of B2B? This is known as the abbreviation of Busin...

Definition of B2B? This is known as the abbreviation of Business to Business. Abbreviation Of Business To Business

Describing univeriate data, X 420 610 625 500 400 550 650 480 565 Y 2.80 3...

X 420 610 625 500 400 550 650 480 565 Y 2.80 3.60 3.75 3.00 2.50 2.70 3.50 3.90 2.0 2.95 3.30 Calculate te covarience anf the correlatio coeficient. Comment on the relationship be

Estimate the proportion of lake trout with lamprey scars, In a certain lake...

In a certain lake a limnologist wishes to estimate the proportion of lake trout with lamprey scars. (a) How large of a random sample should be taken if the limnologist has no pr

Define ACCOUNTING PERIOD , Any time period specific for which economical re...

Any time period specific for which economical reports are prepared. Talk about FISCAL PERIOD.

Determine the hypothesised value, Read Confidence Intervals and P-values in...

Read Confidence Intervals and P-values in Section C of your Lecture Workbook or on Cecil under Assignment Resources. Consider a study to determine ways the response rate in surveys

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd