We assume a straight-line relationship between \(x\) and \(y\):
\[ y = mx + b \]
where:
- \(b\) is the intercept (the value of \(y\) when \(x = 0\))
- \(m\) is the slope (how much \(y\) changes for every 1 unit increase in \(x\))
- The difference between the actual \(y\) and predicted \(y\) is called the error.
Interpretation:
- \(b\): starting value of the line
- \(m\): how steep the line is
- error: how far each point is from the line