![]() The estimated simple linear regression equation The graph is called the estimated regression line. No Relationship E(y) x Regression line Intercept b0 Slope b1 is 0Ĩ Estimated Simple Linear Regression Equation Negative Linear Relationship E(y) x Intercept b0 Regression line Slope b1 is negative Positive Linear Relationship E(y) x Regression line Intercept b0 Slope b1 is positive E(y) is the expected value of y for a given x value. b0 is the y intercept of the regression line. The simple linear regression equation is: E(y) = 0 + 1x Graph of the regression equation is a straight line. The simple linear regression model is: y = b0 + b1x +e where: b0 and b1 are called parameters of the model, e is a random variable called the error term. ![]() The equation that describes how y is related to x and an error term is called the regression model. ![]() Simple Linear Regression Model Least Squares Method Coefficient of Determination Model AssumptionsĢ Regression may be the most widely used statistical technique in the social and natural sciences-as well as in business ![]()
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