• Business School
    • Admissions Help
    • School-Specific MBA Essay Tips
    • Executive MBA Essay Tips
    • MBA Admissions Calendar
    • Free Guides
    • Video Tips
    • Podcast
    • Selectivity Index
    • EMBA: The Ultimate Guide for Applicants
  • Medical School
    • Admissions Help
    • Med School Admissions 101
    • Secondary Essay Tips (by School)
    • Student Interviews
    • Free Guides
    • Video Tips
    • Podcast
    • Selectivity Index
  • Law School
    • Admissions Help
    • Law School Admissions 101
    • Selectivity Index
    • Free Guides
    • Podcast
    • Video Tips
  • Graduate School
    • Admissions Help
    • Grad School Admissions 101
    • Free Guides
    • Video Tips
    • Podcast
  • College
    • Admissions Help
    • Free Guides
    • Supplemental Essay Tips
    • Video Tips
    • Podcast
Accepted

1 (310) 815-9553

Blog HomePodcastContact Us

Accepted Admissions Blog

Everything you need to know to get Accepted

July 20, 2009

Reading Time: < 1 minute

MBA Math Monday: Linear Regression

The MBA Math Monday series helps prospective MBA students to self assess their proficiency with the quantitative building blocks of the MBA first year curriculum.

Linear regression helps to identify the best line characterizing two sets of data.  Regression generally is used where one factor managers control, such as advertising, is believed to influence another factor of interest, such as sales.  The notion of causality can be wrong, however, so like much of statistics it is important to understand the tool and use it wisely.  Linear regression also quantifies the degree of linearity in a relationship, which you can see in a scatterplot by the extent to which the data create a line versus a scattered set of dots. 

Various nonlinear regression options are available at the click of a button in Excel, all with risks of incorrect assumptions and unwise overprecision. 

One need only look at the monumental financial consequences of failure to anticipate the end of rising house prices to understand that extrapolating the past blindly into the future can be disastrous.  Understanding linear regression is an important step in absorbing the value and limits of statistics.

Exercise:

Consider the following sample data for the relationship between advertising budget and sales for Product A:

 

Observation 1 2 3 4 5 6 7 8 9 10
Advertising ($K) 60 70 70 80 80 90 100 100 100 110
Sales ($K) 362 416 417 499 485 536 602 623 616 663


What is the slope of the “least-squares” best-fit regression line?

 

Solution (with audio commentary): click here

Prof. Peter Regan created the self-paced, online MBA Math quantitative skills course and teaches live MBA courses at Dartmouth (Tuck), Duke (Fuqua), and Cornell (Johnson).

Article by / MBA Admissions

Get Accepted!

Choose your desired degree and then the service that best meets your needs.

Which program are you applying to?

What do you need help with?

Join the informed applicants who read Accepted's blog!

8 Popular Posts

1. 2022-23 AMCAS Work and Activities Section: What to Include (With Examples)

2. 7 Simple Steps to Writing an Excellent Diversity Essay

3. Top STEM MBA Programs: A Comprehensive List and Overview of STEM-OPT Eligible B-Schools

4. How to Write About Your Research Interests

5. Sidney Kimmel Medical College at Thomas Jefferson University Secondary Application Tips [2022-2023]

6. 4 Ways to Show How You’ll Contribute in the Future

7. Top 10 LSAT Study Tips

8. M7 MBA Programs: Everything You Need to Know in 2022

Recent Posts

  • Georgetown University School of Medicine Secondary Application Essay Tips [2022 – 2023]
  • Stanford GSB MBA Application Essay Tips and Deadlines [2022 – 2023], Class Profile
  • An Interview With the Temple Katz School of Medicine Admissions Dean [Episode 476]
  • Johns Hopkins University School of Medicine Secondary Application Essay Tips [2022 – 2023]
  • Icahn School of Medicine at Mount Sinai Secondary Application Essay Tips [2022 – 2023]

Sample Essays

MBA Personal Statement Examples

Medical School Personal Statement Examples

Graduate School Personal Statement Examples

Law School Personal Statement Examples

College Application Essay Examples

 

This Site is Featured on GMATClub

Home Page Services and Prices MBA Med School Law School Grad School College

About Us Press Room Contact Us Podcast Accepted Blog
Privacy Policy Website Terms of Use Disclaimer Client Terms of Service

Accepted 1171 S. Robertson Blvd. #140 Los Angeles CA 90035 +1 (310) 815-9553
© 2022 Accepted

BBB A+ RatingStamp of AIGAC Excellence

Copyright © 2022 · Education Pro Theme on Genesis Framework · WordPress · Log in