What Is Regression In Statistics? | Understand Regression In Real World Scenario

- Sales of your company product have dropped suddenly this year, wait! but how? Lets regress back!

- House price of my colony has been increased by 10% this year, wait! but how? Lets regress back!

- Some of the students of my class have crossed distinction but some couldn't, what could be the reason? Lets regress back!

If we listen to simple English literature, Regress means “Lets return to the past” and if we listen to the Statistics, well! its the same! “Lets return to the past”.

But why past?

The answer is simple. This is the only weapon that you've that can let you understand the present scenario.

- Your company sales suddenly dropped. The reason could be the country GDP or economic factor or quality index or service index or anything else.

- House price of my colony has been increased. Reason could be the season effect or land price effect or anything relevant to the scenario.

- Some of the students have crossed distinction and some couldn't. Reason could be the student who comes regularly to the class gets more marks or perhaps the number of hours student studies are affecting their grades.

Now divide the above scenario into two parts. First we say, Effect (Problem) and second we call it Cause (Reason of the problem).

Effect (Problem)
Cause (Reason of the problem)
Sales value
GDP of the country
Economic factor
Quality index
Service index
House price
Land price
Students grade
Hours studied

In Statistics, the Effect i.e. Sales value or House price is called Response Variable / Dependent Variable and the Cause i.e. GDP of the country, Economic factor or Season or Attendance is called Predictor / Independent Variable.

The representation of this cause and effect relationship is called Regression.

So, would you like to share your thoughts about Regression and it's uses in real life? Let me know your experiences in the comments below and please do share the post with your friends as well!


  1. Though not a deep understanding but a great way of explaining on a high level


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