STAT 302 Lecture 1: Regression

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Suppose that y is a response variable (plotted on the vertical axis) and x is an explanatory variable (plotted on the horizontal axis). A straight line relating y to x has an equation of the form y = a + bx: in this equation, b is the slope, the amount by which y changes when x increases by one unit. The number a is the intercept, the value of y when x = 0. The least-squares regression line of y on x is the line that makes the sum of the squares of the vertical distances of the data points from the line as small as possible. P o p ul at io n regression line. We have n observations on an explanatory variable x and a response variable y. Our goal is to study or predict the behavior of y for given values of x.

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