Statistical Analysis Using Regression

Summary

This chapter has provided a very brief overview of linear regression, a very powerful tool for both testing of hypotheses (as in the environmental justice example above) and forecasting results (as in some of the discussions of recreation demand models, above). Our purpose here is simply to expose you to the usefulness of this method for analyzing data. Anyone who uses regression techniques should appreciate the importance of using this method thoughtfully. Such thoughtful use includes thinking about what data should (or should not!) be included, what variables are independent and which are dependent, choice of functional form, and careful interpretation of the results and predictions. The skills from this chapter will, we hope, enable you to understand, use, and critique others’ use of regression analysis as well as to run your own regressions. At the same time, this chapter is only a brief overview. If you suspect your regression might violate some of the assumptions for a linear regression, or if you want more insight into the subjects discussed here, please consult additional sources.