Understanding relationships between variables

Simple linear regression is a statistical method used to model the relationship between two variables.

• One variable is the predictor (independent variable)
• One variable is the response (dependednt variable)
• It helps us understand trends and make predictions

The equation for simple linear regression is:

\[ y = \beta_0 + \beta_1 + \epsilon \]

Each part of the equation has a meaning:

\[ \beta_0 = \text{intercept(value of y when x = 0)} \]

\[ \beta_1 = \text{slope (change in y for each 1 unit increase in x)} \]