Chapter 13: Simple Linear Regression

Simple linear regression: models that use a single numerical independent variable, X, to predict
the numerical dependent variable, Y

Types of Regression Models

Simple Linear Regression Models

Represent the simplest relationship of a straight line or linear relationship
Chapter 13: Simple Linear Regression

Slope,1, represents the expected change in Y per unit change in X

Y intercept, 0, represents the mean value of Y when X equals 0
i is the vertical distance of the actual value of Yi above or below the expected value of Yi
on the line
Determining the Simple Linear Regression Equation
need to determine the specific straight line that is the best fit for the data
The Least Squares Method
the sample Y intercept,b0, and sample slope,b1, used to estimate the population
parameters(0 and 1), forming the simple linear regression equation
o aka the prediction line

the two regression coefficients b0 and b1 can be found using least squares method
o minimizes the sum of squared differences between the actual values(Y i) and
predicted values(i)
Predictions in Regression Analysis: Interpolation Versus Extrapolation
when using regression model to predict, only use the relevant range of independent
variable
o includes all values from the smallest to largest X used in developing regression
model
you can interpolate within the relevant range but not extrapolate beyong
range of X values
Computing the Y intercept ,b0, and the slope, b1