Chapter 5 Preview
When you have completed reading this chapter you will be able to:
• learn to calculate a point estimate based on a regression equation.
• understand that this point estimate is the best estimate based on regression statistics.
• learn to calculate an approximate 95% confidence interval centered on your point estimate.
• realize that regression with one independent (or causal) variable is quite limited for business applications.
• see that larger models with more causal variables can increase the explanatory power of regression.
• see that larger models with more causal variables can result in more narrow (more precise) approximate 95% confidence intervals.