The Canadian dollar depreciates when the inflation differential increases and the interest rate differential decreases.
Explanation:
Regression analyzes are a set of mathematical methods to determine the association of a dependent variable with one or more independent variables.
The equation has the form Y= a+ b X, where Y is the dependent variable (that's the variable that runs on the Y axis), X is the independent variable (i.e. it is plotted on the X axis), b is the line slope and a is the y-intercept.
Firstly, regression fits a model to predict.
Example: to form an equation of known house sales data (sale price, how many rooms, etc.) in order to forecast potential selling prices in the same region.
