ABSTRACT
In this chapter and the next, we consider a variety of situations where valuable information can be obtained by investigating relationships between variables. This is the topic of
regression analysis
. Regression is widely used in business, but it is also widely misused. It is very easy to become so involved with the complexities of the various regression formulae and with endless calculations that the purpose and scope of regression are overlooked. As usual we shall leave the calculations to Excel and focus instead on what regression means, the basic ideas involved in carrying out a regression analysis, checking whether the underlying assumptions have been satisfied, and how to use the results.
