Simple Lineair Regression

8 important questions on Simple Lineair Regression

What does correlation (r) measure?

The strength and direction of a linear relationship between two variables X and Y.

What is the range of correlation (r)?

A: From –1 to +1.
  • r = +1 → perfect positive linear relationship
  • r = –1 → perfect negative linear relationship
  • r = 0 → no linear relationship

What is the formula for correlation?

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The Regression Equation - What is the formula for the regression line?

Formula:

The Regression Equation - What does b₀ represent?

The intercept — predicted value of Y when X = 0.
(Where the line crosses the Y-axis.)

The Regression Equation - What does b₁ represent?

The slope — the expected change in Y when X increases by 1 unit.
→ e.g. if b₁ = 2, every +1 in X increases Y by 2 on average.

Formulas for Slope and Intercept - What is the formula for b₁ (slope)?

Formula:

What is the formula for b₀ (intercept)?

Formula:

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