Simple Linear Regression
Imagine you are a business investor and want to invest in startup ventures which are likely to be highly profitable. What are all the factors you look for in the company you want to invest in? Maybe the innovativeness of the products of the startups, maybe the past success records of the promoters. In this case, we say the profitability of the venture is dependent on or associated with innovativeness of the products and past success records of the promoters. The innovativeness of the product itself may be associated with various aspects or factors like usefulness of the product, competition in the market, and so on. These factors may be a little difficult to gauge, but the past success record of the promoters can be easily found from the available market data. If the promoter had started ten ventures and eight were successful, we can say that 80% is the success rate of the promoter.