Chapter 5. Linear Regression in Stata

One of the most used techniques in analytics is linear regression. It helps you predict values based on independent variables. Stata has one of the simplest syntaxes for linear regression and it can prove to be the best tool for predictive analytics and statistical modeling as far as linear regression is concerned. Stata's simple syntax makes it easy for users to understand and relate to statistical (linear regression) concepts and apply these concepts in real life successfully. This will be your first chapter that will foray into statistical modeling, and it's an extremely important chapter from the point of view of developing good knowledge of modeling.

Here are some of the topics we will cover in this chapter:

• Linear regression
• The linear regression code in Stata
• The variance inflation factor and multicollinearity
• Homoscedasticity