What is 'Nonlinear Regression'
Nonlinear regression is a form of regression analysis in which data is fit to a model and then expressed as a mathematical function. Simple linear regression relates two variables (X and Y) with a straight line (y = mx + b), while nonlinear regression must generate a line (typically a curve) as if every value of Y was a random variable. The goal of the model is to make the sum of the squares as small as possible. The sum of squares is a measure that tracks how much observations vary from the mean of the data set. It is computed by first finding the difference between the mean and every point of data in the set. Then, each of those differences is squared. Lastly, all of the squared figures are added together. The smaller the sum of these squared figures, the better the function fits the data points in the set. Nonlinear regression uses logarithmic functions, trigonometric functions, exponential functions, and other fitting methods.
BREAKING DOWN 'Nonlinear Regression'
Nonlinear regression modeling is similar to linear regression modeling in that both seek to graphically track a particular response from a set of variables. Nonlinear models are more complicated than linear models to develop because the function is created through a series of approximations (iterations) that may stem from trialanderror. Mathematicians use several established methods, such as the GaussNewton method and the LevenbergMarquardt method.

Nonlinearity
Nonlinearity is a relationship which cannot be explained as a ... 
Sum Of Squares
Sum of Squares is a statistical technique used in regression ... 
Multiple Linear Regression  MLR
Multiple linear regression (MLR) is a statistical technique that ... 
Hedonic Regression
Hedonic regression is a method used in economics to determine ... 
Econometrics
Econometrics is the application of statistical and mathematical ... 
Heteroskedastic
Heteroskedastic refers to a condition in which the variance of ...

Investing
Regression Basics For Business Analysis
Regression analysis is a quantitative tool that is easy to use and can provide valuable information on financial analysis and forecasting. Find out how. 
Taxes
Comparing Regressive, Proportional and Progressive Taxes
Learn about the basic differences between three common tax systems. 
Investing
The Restoration of Restoration Hardware Continues
Restoration Hardware reported strong quarterly results that beat expectations, advancing its turnaround story. 
Tech
Square Inc. to Report Q3 Earnings (SQ)
The global fintech leader may be positioned to secure its fourth consecutive earnings beat since its public debut in November of last year. 
Investing
Rising Prices: Inflation or Quality Improvements?
Price indices are used to measure inflation, but qualitative improvements in products complicates attempts to isolate the true cause of rising prices. 
Tech
Needham Initiates Square Inc. at Buy
Analysts applaud the fintech leader's 'complete and cohesive' platform for clients of all sizes. 
Tech
How Square Inc. Transformed in 2016
Jack Dorsey's fintech platform saw rapid growth in Square Capital and with larger sellers. 
Tech
Square Moves to Attract 'Upmarket' Clients (SQ)
In the fintech leader's latest earnings call, the company indicates a push to harness larger businesses in order to gain more stable and lucrative revenue. 
Investing
Square Seen Rising Higher on Bitcoin, M&A
Square's stock already has risen nearly 60% in the past year, far outpacing the S&P 500. 
Investing
How This New ETF Tracks Millennial Consumer Habits
A recently launched ETF aims to track Millennial consumer habits.

What is a "non linear" exposure in Value at Risk (VaR)?
Learn about nonlinearity and value at risk and what a nonlinear exposure is in the value at risk of a portfolio of nonlinear ... Read Answer >> 
How can you find the demand function from the utility function?
Learn how the utility function can be used to derive the demand function, and how both of these concepts relate to utility ... Read Answer >> 
Is there an easy way to do financial forecasting in Excel?
Find out how to use Excel to conduct financial forecasting. Learn how to build a complex financial model, and discover functions ... Read Answer >> 
What are the differences between regressive, proportional, and progressive taxes?
Learn the three basic types of tax systemsregressive, proportional, and progressiveused in the U.S., and how they affect ... Read Answer >> 
Does a negative correlation between two stocks mean anything?
Learn what the concept of negative correlation means, understand how it is generally calculated and see how it is used in ... Read Answer >> 
What is the difference between financial forecasting and financial modeling?
Understand the difference between financial forecasting and financial modeling, and learn why a company should conduct both ... Read Answer >>