What is Simple Linear Regression?
Simple Linear Regression is a method of sales forecasting that is focused on studying the relationships between two quantitative variables such as sales values and sales volumes. It can measure how strong the relationship is by determining the value of one variable at the certain value of another variable, for example impact of advertising spending on sales revenue.
One variable X on the x-axis is independent, also called predictor or explanatory. And, the other variable Y on the y-axis is dependent on the first one, also called outcome or response. The response variable Y is the amount of sales revenue and the predictor variable X is the amount of money the business spent on advertising. In short, Y depends on X.
How to Calculate Simple Linear Regression?
Simple Linear Regression calculator uses Dependent Variable = Regression Line Slope*Independent Variable+Y Intercept to calculate the Dependent Variable, The Simple Linear Regression formula is defined as regression analysis used to understand the relationship between a dependent variable and an independent variable. Dependent Variable is denoted by Y symbol.
How to calculate Simple Linear Regression using this online calculator? To use this online calculator for Simple Linear Regression, enter Regression Line Slope (B), Independent Variable (X) & Y Intercept (A) and hit the calculate button. Here is how the Simple Linear Regression calculation can be explained with given input values -> 45 = 2*20+5.