Regression Analysis By Example -

): This tells you what percentage of the "story" is explained by temperature. If , then 85% of your sales fluctuations are due to heat.

Once you run the numbers, you don't just take the result at face value. You check: R-Squared ( R2cap R squared Regression Analysis by Example

Y=β0+β1X+ϵcap Y equals beta sub 0 plus beta sub 1 cap X plus epsilon β0beta sub 0 (Intercept): Sales when the temperature is 0 degrees. β1beta sub 1 ): This tells you what percentage of the

): Daily high temperature (the factor you think causes the change). 1. The Simple Linear Model The goal is to find the equation for a straight line: Regression Analysis by Example