What are regression coefficients and how do they work?

What are regression coefficients and how do they work?

Regression coefficients are values that represent the relationship between independent variables and the dependent variable in a regression model. They indicate how much the dependent variable is expected to change when one of the independent variables changes, holding all other variables constant.

Can you explain the difference between positive and negative coefficients?

Sure! A positive regression coefficient indicates that as the independent variable increases, the dependent variable also increases. Conversely, a negative coefficient suggests that as the independent variable increases, the dependent variable decreases.

How do I interpret the magnitude of a coefficient?

The magnitude of a coefficient indicates the strength of the relationship between the independent variable and the dependent variable. A larger absolute value means a stronger effect on the dependent variable.

What if a coefficient is close to zero?

If a coefficient is close to zero, it suggests that there is little to no relationship between that independent variable and the dependent variable, meaning changes in the independent variable have a minimal effect on the dependent variable.