Financial Dictionary

This dictionary contains:
24549
financial terms

Regression equation




Regression equation

An equation that describes the average relationship between a dependent variable and a set of explanatory variables.

RELATED TERMS
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Average
An institution or person who gives the aval.

Dependent
Acceptance of a capital budgeting project contingent on the acceptance of another project.

Variable
A quantity that is liable to change; the adjective describing such a quantity.



SIMILAR TERMS
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Regression
A mathematical technique used to explain and-or predict. The general form is Y = a + bX + u, where Y is the variable that we are trying to predict; X is the variable that we are using to predict Y, a is the intercept; b is the slope, and u is the regression residual. The a and b are chosen in a way to minimize the squared sum of the residuals. The ability to fit or explain is measured by the R-square.

Regression analysis
A statistical technique that can be used to estimate relationships between variables.

Regression coefficient
Term yielded by regression analysis that indicates the sensitivity of the dependent variable to a particular independent variable.

Regression toward the mean
The tendency that a random variable will ultimately have a value closer to its mean value.

Regressive tax
A tax system that provides that average tax rates decrease with increases in individuals' income brackets.

Regressive taxation
Makes poorer people pay a greater proportion of their income in tax than the rich.

Regret theory
A theory that says people anticipate regret if they make a wrong choice, and take this anticipation into consideration when making decisions.



PREVIOUS AND NEXT TERMS
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Registration right
A contractual right giving investors holding restricted stock the ability to demand that the issuing company register the shares to the SEC, effectively making the stock available for sale to the public.

Registration statement
A legal document filed with the SEC to register securities for public offering that details the purpose of the proposed public offering. The statement outlines financial details, a history of the company's operations and management, and other facts of importance to potential buyers.

Regression
A mathematical technique used to explain and-or predict. The general form is Y = a + bX + u, where Y is the variable that we are trying to predict; X is the variable that we are using to predict Y, a is the intercept; b is the slope, and u is the regression residual. The a and b are chosen in a way to minimize the squared sum of the residuals. The ability to fit or explain is measured by the R-square.

Regression analysis
A statistical technique that can be used to estimate relationships between variables.

Regression coefficient
Term yielded by regression analysis that indicates the sensitivity of the dependent variable to a particular independent variable.

Regression equation

Regression toward the mean
The tendency that a random variable will ultimately have a value closer to its mean value.

Regressive tax
A tax system that provides that average tax rates decrease with increases in individuals' income brackets.

Regressive taxation
Makes poorer people pay a greater proportion of their income in tax than the rich.

Regret theory
A theory that says people anticipate regret if they make a wrong choice, and take this anticipation into consideration when making decisions.

Regular settlement
Transaction in which a stock contract is settled and delivered on the fifth full business day following the date of the transaction (trade date). In Japan, regular settlement occurs three business days following the trade date; in London, two weeks following the trade date (at times, three weeks); in France, once per month.

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This dictionary contains 24549 terms.







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