- A statistical method to model the relationship between a dependent variable and an independent variable.
- Assumes a linear relationship between the two variables, and attempts to model the best fitting linear equation that fits the data.
- The goal with simple linear regression is to minimize the error:
- \(e_i = y_i - \hat{y}_i\)
- \(e_i\) is the error
- \(y_i\) is the observed value
- \(\hat{y}_i\) is the predicted value
- \(e_i = y_i - \hat{y}_i\)