Linear regression is a statistical method for determining the relationship between one or more independent variables and a single dependent variable. In this chapter we look at what is called simple linear regression. Simple linear regression is the relationship between a single independent variable and a single dependent variable.

11.1 Meaning and Calculation of Linear Regression

Linear regression is a method of organizing data that uses the least squares method to determine which line best fits the data.

To examine what is meant by the relationship between an independent variable and a dependent variable, consider the four graphs shown in Figure 11.1. The figure shows examples of four different possible relationships between two variables. The black points in each graph represent individual observations (50 in all but difficult to count). The horizontal axis (from 0 to 20) represents the value of any individual observation on the independent variable. This variable is commonly designated x. The vertical axis (from 0 to 20) represents the value of each individual observation on the dependent variable. The ...

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