Salam Academy
Option · Module

Linear regression

1 subtopic≈ 35 min in total
  1. The least squares regression line

    The regression line of yy on xx, y=a+bxy=a+bx, is the straight line that makes the squared vertical distances from the points as small as possible. Its gradient is b=SxySxxb=\dfrac{S_{xy}}{S_{xx}} and it always passes through (xˉ,yˉ)(\bar x,\bar y), so a=yˉ−bxˉa=\bar y-b\bar x.

    ≈ 35 min