One use of a regression line is

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UGC NET Paper 2: Management 30th Sep 2020 Shift 1
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  1. To determine if any x values are outliers.
  2. To determine if any y values are outliers
  3. To determine if a change in x causes a change in y
  4. To estimate the change in y for a one-unit change in x

Answer (Detailed Solution Below)

Option 4 : To estimate the change in y for a one-unit change in x
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Detailed Solution

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Regression line:

  • The regression line is a straight line that describes the behavior of a set of data or the trend of a given set of data.
  • It is useful in forecasting the procedures.
  • The purpose of the regression line is to explain the interrelation of a dependent variable i.e., Y variable with an independent variable i.e., X variable.
  • By using the regression line, the future behavior of the dependent variable can be analyzed by using different independent variables.

The regression line can be calculated by using the formula:

Y = a + bx + u

Where,

  • Y represents the dependent variable
  • X represents the independent variable
  • a represents the interception point
  • b represents the slope
  • u represents the residual regression

The regression line helps in estimating the change in y for a one-unit change in x.

Hence, Option 4 is the correct answer.

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