MGMT 1050 Chapter 16: CH 16 Notes part1
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The purpose of simple regression analysis is to predict the value of one variable based on the value of one other variable using a mathematical equation. The variable whose value your trying to predict is the dependant variable (y), and the variable you are using to predict is the independent variable (x) Deterministic model predicts a specific value for each value of the independent variable (similar to the point estimate) Probabilistic model same as the deterministic model but also incorporates the randomness of real-life. For instance, if we are trying to determine the number of pieces of candy in a bag based on the weight of the bad, a deterministic model could be. Where y is the number of candy in the bag and (cid:454) is the (cid:271)ag"s (cid:449)eight i(cid:374) gra(cid:373)s. a deterministic model would predict that there are 30 pieces of candy in a bag that weights.
