Simple Linear Regression is a statistical method that models the relationship between two quantitative variables —
a dependent variable \(y\) and an independent variable \(x\), using a line drawn through those variables’ data points, known as a regression line. It helps us understand how changes in \(x\) affect \(y\), and is used for prediction or trend estimation.
The general form of the simple linear regression model is:
\[ y_i = \beta_0 + \beta_1 x_i + \epsilon_i \]
where:
- \(y_i\): the dependent (response) variable
- \(x_i\): the independent (predictor) variable
- \(\beta_0\): the intercept (value of \(y\) when \(x = 0\))
- \(\beta_1\): the slope (how much \(y\) changes when \(x\) increases by 1 unit)
- \(\epsilon_i\): the random error term