Applying regression analysis for sales data

Regression analysis is a type of predictive modeling technique which investigates the relationship between variables. This is widely used for forecasting, time series modeling and finding the effect of relationships between the variables. In this, we try to fit a curve/line for the data points such that the differences between the distances of data points from the curve or line is minimized. Linear regression is the mostly frequently used technique. In this technique, the dependent variable is continuous, independent variables can be continuous or discrete, and the nature of the regression line is linear. The equation which is used to predict the value of the target variable is based on the following predictor variables:

y = aX +E 
y = target variable 
X = input variable 
a = regression coefficient 
E = the error term 

Regression techniques are driven by three metrics-the number of independent variables, the type of dependent...