How do you interpret a negative coefficient in a regression model?

In a regression model, the coefficients represent the relationship between the independent variables and the dependent variable. When you have a negative coefficient, it signifies that there is an inverse relationship between the independent variable and the dependent variable. This means that as the independent variable increases, the dependent variable tends to decrease, and vice versa.

For example, if you were to analyze the impact of spending on advertising (independent variable) on sales (dependent variable) and found a negative coefficient for advertising spending, it would imply that increasing advertising spending is associated with decreasing sales, highlighting an inverse relationship.

This understanding of the negative coefficient is crucial for making informed decisions based on the regression outcomes, as it helps in interpreting how changes in independent variables will affect the dependent variable.