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 1, 2014 at 20:18 | comment | added | Umair Aslam | No, the data has not been put into a unit of millions, i am just saying and confirming that yes it is in millions, that is 190,000,000 etc . | |
| Oct 1, 2014 at 15:07 | comment | added | whuber♦ | In that case Umair, your question is misleading, because the intercept is only -190, not -190 million as it currently states. It is important to be consistent--or at least explicit--about the units of measurement you use when reporting numbers. | |
| Oct 1, 2014 at 5:15 | comment | added | Umair Aslam | Both Subscribers and Revenue are in millions, Revenue is crossing 200 million on a daily basis, while subscribers are 16 million. | |
| Sep 30, 2014 at 22:59 | comment | added | Peter Flom | Good point @whuber I assumed the units were sensible, but often they are not. I was thinking dollars (units) and subscribers (units) but (as I know from clients!) people do weird things sometimes. | |
| Sep 30, 2014 at 21:45 | comment | added | whuber♦ | It seems to me that some consideration of units of measurement ought to enter into pronouncements of nonsensicality, which is a severe judgment. For instance, if subscribers are measured in the millions and revenue only in dollars, then this intercept could be practically zero. Another possibility is that "revenue" is being used to mean "profit" or "net cash flow" or something of the sort. Either of these would be a more benign construction to put on the output than any of the possibilities suggested in this answer (although I suspect all three of the answer's possibilities could be true). | |
| Sep 30, 2014 at 21:18 | comment | added | Peter Flom | I don't know any software that meets both those requirements, but doing a linear regression is pretty easy in any software - R, SAS, SPSS.... Whatever you have. R is free, which is nice. If the lowest value is not far from the mean, then that variable is very skew. Taking log of revenue might be good. Hard to tell without seeing the scatterplot | |
| Sep 30, 2014 at 21:12 | comment | added | Umair Aslam | Also, i have checked the data again and again. It is completely fine and taking out the outliers wont help either. Which software would you recommend. Which is easy and requires not much of the programming background :) | |
| Sep 30, 2014 at 21:10 | comment | added | Umair Aslam | The graph shows positive linear relation ship. Also at some 100th percentile you do see 2 outliers. Other than that it is simple subscriber base and revenue from that base. Yes the lowest value is not very far away from mean. So the best fit line made if extended may cross through the negative side at 0. | |
| Sep 30, 2014 at 21:04 | history | answered | Peter Flom | CC BY-SA 3.0 |