To accommodate the relationships including non-linear or curved patterns and multiple factors.
We have observed at break-even calculations, scatter plots for estimating demand information as well as trends in revenue so far. In each of these we simplified the analysis to a straight line. While this is beneficial sometimes these data are more complex. They may be a curved line or else instead of only one item for the slope such as variable costs, there may be several factors involved in the estimate. Therefore demand, for example may be based on price convenience, or quality. How does a linear regression permit us to better estimate trends, costs, and other factors in complex situations?