Timeline for Why is the intercept negative, and what does my regression show?
Current License: CC BY-SA 3.0
9 events
| when toggle format | what | by | license | comment | |
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| Oct 2, 2014 at 12:32 | history | edited | Glen_b | CC BY-SA 3.0 | fixed typo |
| Oct 1, 2014 at 23:44 | comment | added | Glen_b | (ctd) ... without a much more solid basis than the fact that the relationship is close to linear within it. | |
| Oct 1, 2014 at 23:41 | comment | added | Glen_b | Well, no, the plot isn't trying to predict anything, it's simply showing that a relationship can be essentially linear where the data is and yet not actually have expectation where the extrapolation to zero would suggest. When you find the negative intercept of the line confusing, that's because you are placing an interpretation on the fitted equation as having a prediction at subs=0. I'm trying to convey why such an intepretation should not be taken remotely seriously as a prediction. You shouldn't project such equations beyond the range of the data ... (ctd) | |
| Oct 1, 2014 at 20:20 | comment | added | Umair Aslam | Yes apparently, no one has ever or could ever see 0 subscribers. While the plot is somehow trying to predict revenue at 0. Is there anyway of going around this problem ? Also, how can revenue ever be in negative when the number utilized is gross revenue. | |
| Oct 1, 2014 at 15:09 | comment | added | whuber♦ | +1 The plot is helpful. Based on comments by the OP I suspect that the use of "revenue" here may be unconventional; it seems to refer to some form of net revenue. That interpretation resolves the apparent problem of projecting nonzero "revenue" for zero subscribers. | |
| Oct 1, 2014 at 12:12 | comment | added | Glen_b | It sounds like you completely misunderstand what the green curve is intended to convey. | |
| Oct 1, 2014 at 5:38 | comment | added | Umair Aslam | Residual plot shows a random pattern, showing a good fit for linearity. Also, the green part shows that it will go to the negative side. But that should not happen, How should i read the equation then :( | |
| Sep 30, 2014 at 22:35 | history | edited | Glen_b | CC BY-SA 3.0 | added 129 characters in body |
| Sep 30, 2014 at 22:20 | history | answered | Glen_b | CC BY-SA 3.0 |