7. Regression Analysis

We first provide comprehensive, but simple, access to essential regression knowledge by discussing how regression analysis works, the requirements and assumptions on which it relies, and how you can specify a regression analysis model that allows you to make critical decisions for your business, clients, or project. Each step involved in regression analysis is linked to its execution in Stata (using menus and code). We show how to use a range of Stata’s easy-to-learn statistical procedures that underlie regression analysis, which will allow you to analyze, chart, and validate regression analysis results and to assess your analysis’s robustness. Interpretation of Stata output can be difficult, but we make this easier by means of an annotated case study. We conclude with suggestions for further readings on the use, application, and interpretation of regression analysis.