STAT-2066EL Chapter Notes - Chapter 16: Simple Linear Regression, Regression Analysis, Linear Regression
7 Mar 2019
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It is the difference between the actual relationship and the estimated relationship: both beta values are population parameters which are usually unknown and hence estimated from the data. A model: to create a probabilistic model, we start with a deterministic model that approximates the relationship we want to model and add a random term that measures the error of the deterministic component. Estimating the coefficients: in much the same way we base estimates of ! using ! the y-intercept and slope of the least squares or regression line given by: on ! Y = b0 + b1x: this is an application of the least squares method and it produces a straight line that minimizes the sum of the squared differences between the points and the line. , which is constant regardless of the value of x: the value of ! associated with any particular value of y is independent of ! associated with any other value of y.
