The REGRESS.lng Model

Linear Regression

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Linear Regression is a forecasting technique used to predict the value of one variable (called the dependent variable) based upon the value of one or more other variable (the independent variables).

Our example is a simple linear regression model with one independent variable. The data is fit to a linear equation of the form:

Y( i)=CONS+SLOPE*X( i)
where Y is the dependent variable, X is the independent variable, CONS is the value of Y when X=0 and SLOPE is the rate of change in Y with a unit change in X.

For our example, the dependent variable, Y, is the number of annual road casualties and the independent variable, X, is the number of licensed vehicles. We have 11 years of data.


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