Simple Linear Regression

Abstract

Imagine you are a business investor and want to invest in startup ventures that are likely to be highly profitable. What are all the factors you evaluate in the companies you want to invest in? Maybe it’s the innovativeness of the products of the startups, or maybe it’s the past success records of the promoters. In this case, we say the profitability of the venture is dependent on or associated with the innovativeness of the products and past success records of the promoters. The innovativeness of the product itself may be associated with various aspects or factors, such as usefulness of the product, competition in the market, and so on. These factors may be a little difficult to gauge, but the past success record of the company can easily be found from publicly available market data. If the promoter had started 10 ventures and 8 were successful, we can say that the success rate of the promoter is 80 percent.