Process Required In Calculating The Relative Error In Linear Regression

Process Required In Calculating The Relative Error In Linear Regression

Calculating the relative error during linear regression analysis is very easy. You just need to know the absolute error first. So basically, we have two methods to calculate the relative error in linear regression algorithms.

Method 1

Relative error = Absolute error/Actual Value

This method assumes that we know the absolute error value. If you don’t, you can use another method.

Method 2

Relative error = (Measure value – Actual Value)/Actual value

Hence you can calculate the relative error.

Process Required In Calculating The Relative Error In Linear Regression

For the definition, “linear regression” is one type of statistical analysis that tries to show a relationship between two variables. It looks at different data points and plots a trend line. This type of statistical analysis can create a predictive model on obviously random data and showing trends in data like in cancer diagnoses or in stock prices.

This statistical analysis is a vital tool in analytics. The method uses statistical computations to plot a trend line in a set of data points. The trend line could be anything from the number of people diagnosed with skin cancer to the financial performance of a particular company. It shows a relationship or a connection between an independent variable and a dependent variable being studied.

The computations to perform linear regressions can be pretty complex. Luckily, linear regression models are included in most major calculation packages like Microsoft Office Excel, Mathematica, R, and MATLAB.