Regression analysis its Utility and limitation.

 Regression analysis is a statistical technique to use to predict the value of one variable after the using the value of other variable.It is a mathematical model of the measuring average relationship between two or more than two variable.

There are two types of Regression.One is simple regression and second is multiple regression.

1.Simple regression- It is the first type of regression. The process of estimating the mathematical relationship between a dependent variable and an independent variable this process is called simple regression.

The dependent variable usually called y and the independent variable is called x.

2.Multiple regression- It is the second type of regression.The regression that explain the relationship between multiple independent variable and one dependent variable this type of regression is called multiple regression.

Use of regression-

1.It formulates the functional relationship between two and more than two variables.

2.It determines the functional relationship between two and more than two variables.

3.It shows the cause and effect relationship between two and more than two variables of economy like Income,Tax etc.

4.It shows the cause and effect relationship between two and more than two variables of business like Production, Sales, Price, Supply etc.

5.It predicts the value of dependent variables like Price, Production, Supply etc.

6.It may estimate the value of dependent variables like Price, Production, Supply etc.

Limitation-

1.It is a statistical model not practical so every one may not use it properly.

2.It only explain linear relationship.

3.It is not applicable every function of business like Communication, advertising.