|
|
Linear regression |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Linear regressionA statistical technique for fitting a straight line to a set of data points.Linear regression Similar MatchesFirst pass regressionFirst pass regressionA time series regression to estimate the betas of securities portfolios. Regression coefficientRegression coefficientTerm yielded by regression analysis that indicates the sensitivity of the dependent variable to a particular independent variable. See: Parameter. Simple linear regressionSimple linear regressionA regression analysis between only two variables, one dependent and the other explanatory. RegressionRegressionA mathematical technique used to explain and/or predict. The general form is Y = a + bX + u, where Y is the variable that we are trying to predict; X is the variable that we are using to predict Y, a is the intercept; b is the slope, and u is the regression residual. The a and b are chosen in a way to minimize the squared sum of the residuals. The ability to fit or explain is measured by the R-square. Second pass regressionSecond pass regressionA cross-sectional regression of portfolio returns on betas. The estimated slope is the measurement of the reward for bearing systematic risk during the period analyzed. Further SuggestionsRegression toward the meanMultiple regression regression analysis Regression analysis Regression equation Regression analysis |
|
|
|