American Institute of Certified Planners (AICP) Practice Exam

An analysis of the relationship between two variables is called?

1. Linear regression

2. Regression analysis

3. Correlation analysis

4. Descriptive statistics

The correct answer is: Regression analysis

The correct answer, regression analysis, refers to a statistical method used for estimating the relationships among variables. Specifically, it allows planners and researchers to understand how the dependent variable changes when one or more independent variables are varied. This broader analytical framework encompasses various specific techniques, including linear regression. In regression analysis, multiple types of regression can be employed, such as linear regression, which focuses solely on relationships that can be represented as a straight line. Therefore, regression analysis provides a complete toolkit for assessing relationships and making predictions based on data. While correlation analysis focuses specifically on the strength and direction of the relationship between two variables, it does not imply causation and is limited to assessing the nature of that relationship without providing a predictive model. Descriptive statistics is another related concept, but it primarily involves summarizing data through measures like central tendency and variability, rather than analyzing relationships between variables. Thus, regression analysis stands out as the comprehensive approach for examining the interdependencies among multiple variables.