See Also: regression(encyclopedia)
regression(dictionary)
regression of the mean(medicine)
regression(dictionary)
Regression toward the mean(finance)
Regression(health)
Regression(finance)
law of regression to mean(medicine)
Regression toward the mean(money)
Regression(money)

Regression (finance)


A 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.