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1 / 19

Simple linear regression

y=β0+β1x+ϵ

2 / 19

Simple linear regression

y^=β^0+β^1x

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Simple linear regression

What is the method used to estimate β^0 and β^1?

y^=β^0+β^1x

4 / 19

Simple linear regression

What is the method used to estimate β^0 and β^1?

5 / 19

Simple linear regression

What is least squares minimizing?

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Simple linear regression

What is least squares minimizing?

  • Sum of square errors (SSE)

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Simple linear regression

How do we calculate the SSE?

  • SSE: (yy^)2

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Simple linear regression

How do we calculate the SSE?

  • SSE: (yy^)2

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Simple linear regression

How do we calculate the a residual?

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Simple linear regression

How do we calculate the a residual?

  • residual: yy^
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Simple linear regression

How do we calcualte the regression standard error (residual standard error)?

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Simple linear regression

How do we calcualte the regression standard error (residual standard error)?

  • σ^ϵ=SSEn2
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Simple linear regression

How do we interpret the regression standard error?

  • σ^ϵ=SSEn2
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Simple linear regression

What are the (six) assumptions for simple linear regression?

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Simple linear regression

What are the (six) assumptions for simple linear regression?

  • Linearity
  • Zero Mean
  • Constant Variance
  • Independence
  • Random
  • Normality
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Simple linear regression

ϵN(0,σϵ)

  • Linearity
  • Zero Mean
  • Constant Variance
  • Independence
  • Random
  • Normality
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Simple linear regression

What are the three parameters we estimate with simple linear regression?

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Simple linear regression

What are the three parameters we estimate with simple linear regression?

  • β^0
  • β^1
  • σ^ϵ
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Simple linear regression

y=β0+β1x+ϵ

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