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What Is a Regression?
Regression is a statistical method used in finance, investing, and other disciplines that attempts to determine the strength and character of the relationship between one dependent variable (usually denoted by Y) and a series of other variables (known as independent variables).
A regression is a statistical technique that relates a dependent variable to one or more independent (explanatory) variables.
A regression model is able to show whether changes observed in the dependent variable are associated with changes in one or more of the explanatory variables.
It does this by essentially fitting a best-fit line and seeing how the data is dispersed around this line.
Regression helps economists and financial analysts in things ranging from asset valuation to making predictions.
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