beta coefficient

The beta coefficient measures how much a specific variable, like advertising spend, influences another, such as sales. It indicates the strength and direction of this relationship: a positive beta suggests that as the variable increases, the outcome tends to increase as well; a negative beta means the opposite. For example, a beta of 0.5 means that a one-unit increase in the variable is associated with a half-unit increase in the outcome. Beta helps identify key drivers in data and informs decision-making by quantifying the impact of each factor on the result.