How would you explain a linear regression to a business executive?

How would you explain a linear regression to a business executive?



Answer: Linear regression models are used to show or predict the relationship between two variables or factors. The factor that is being predicted (the factor that the equation solves for) is called the dependent variable. The factors that are used to predict the value of the dependent variable are called the independent variables.


You can use linear regression to predict continuous variables (salary) taking into account variables that explain (education, experience, occupation). You may have heard something along the lines of "Women in the US earn 77% of what men earn, but if you account for different factors like experience, occupation, etc., that number becomes 91%."

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