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I am trying to get my regression right. I want to see, if subs increase how much increase in revenue is seen. The dependent variable is Revenue while the independent variable is subscribers.

Least squares method regression shows the following equation 24.4x - 189,883,443. I can't make sense of it. If subs increase means increase in revenue, then why this?

There is no 0 value and the lowest value for subscribers starts with 10 m while revenue starts with 180 m

How can i make sense of y = 24.4x - 189,883,443. Why is the intercept negative. Does it mean that one sub increase would mean a revenue increase of 24.4

Umair Aslam
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    That is the equation of a straight line with positive slope. Try plotting it. – Nick Cox Sep 28 '14 at 22:46
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    the huge negative intercept suggests that the range of the independent variable in your data set starts far above zero -- are you for example using time in days or hours from the beginning of the common era? – Ben Bolker Sep 28 '14 at 23:29
  • You might find the equation more intuitive if you also formulate your $y$ and $x$ (which I presume are "revenue" and "subs"? you should clarify your variable definitions) in terms of deviation from the mean, which gives: $\hat{y} -\bar{y}=24.4 (x-\bar{x})$. – Glen_b Sep 29 '14 at 00:09
  • yes, the data i have starts much far above 0, the first related event would intersect at 14,000,000 subs and some 200,000,000 revenue. I am using time in days, daily sub and revenue picture is given. I just wanted to see how many subs increase would mean what in revenue. My Revenue / SUB mean is 12.24, then what does this 24 mean ? – Umair Aslam Sep 29 '14 at 05:58

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