regression analysis: 0 assuming causation o predictive 0 understanding the inuence of one variable (independent) on the more interesting variable (dependant) o X-axis: independent variable (vertical) 0 y-axis: dependant variable (horizontal) o trying to find the line that optimizes the explanation of what is happening with the data points Dv = a + biv) Dv = a + blv) + bzav) o a: constant 0 b1: coeicient (multiplier) 0 IV: independent variable 0 we don't look at regression one variable at a time o the data needs to be manipulated before it any calculations can be done with it example: 0 female needs to be switched to l 0 male needs to be switched to 0 0 now the data set is clean regression analysis: 0 assuming causation o predictive 0 understanding the inuence of one variable (independent) on the more interesting variable (dependant) o X-axis: independent variable (vertical) 0 y-axis: dependant variable (horizontal) o trying to find the line that optimizes the explanation of what is happening with the data points Dv = a + biv) Dv = a + blv) + bzav) o a: constant 0 b1: coeicient (multiplier) 0 IV: independent variable 0 we don't look at regression one variable at a time o the data needs to be manipulated before it any calculations can be done with it example: 0 female needs to be switched to l 0 male needs to be switched to 0 0 now the data set is clean these numbers don't look similar, but once we standardize them, they are on the same scale; we see that: the standardized coefficient for age is -0.27; the standardized coefficient for price quality is 0.26 (almost offsetting) . significance level (IMPORTANT) o tells us the significance level of these t-stats o we are looking for a level of significance that is: 0.05 or lower (5%) = a 95% confidence level (meaning we are 95% sure that it is statistically significant) ex. sex and extroversion are not constant is extraversion important? no, we did not find any proof that it mattered does price consciousness matter? yes, it is significant, and it's positive Coefficients Standardized Unstandardized Coefficients Coefficients Model B Std. Error Beta Sig. (Constant) 567.991 110.851 5.124 .000 Sex -5.397 24.632 ..010 -.219 827 Age -3.820 .683 .274 -5.595 000 Extroversion 11.487 10.918 054 1.052 294 Price-Quality 57.227 10.161 260 5.632 000 Relationship Price Consciousness 37.909 9.828 177 3.857 000 Risk Averseness 58.638 11.559 280 5.073 000 Prestige Importance 83.544 8.608 471 9.706 000 a. Dependent Variable: Annual Purchases run the same equation but remove the variables sex and extroversion: . new equation: O the dependent variable is annual purchases annual purchases = - $503.10 - 3.701(age of the individual)(scale level of price quality relationship)(etc.) annual purchases = - $503.10 - 3.701(57.91)(etc.)