#First Attempt
beta_1 <- sum((x-(mean(x))*(y-mean(y))))/(sum(x-mean(x))^2)
beta_0 <- mean(y)-beta_1*mean(x)
Verifying:
beta_1
## [1] 5.315003e+30
beta_0
## [1] -6.284991e+30
xy <- lm(y~x)
xy
##
## Call:
## lm(formula = y ~ x)
##
## Coefficients:
## (Intercept) x
## 77.86 11.80
These two arenโt the same at all.
This became too complicated, so I decided to break it up into separate parts.
# Second Attempt
x2 <- sum((x-mean(x))*(y-mean(y)))
x3 <- sum((x-mean(x))^2)
beta_1 <- x2/x3
beta_0 <- mean(y) - beta_1*mean(x)
beta_0
## [1] 77.86328
beta_1
## [1] 11.80103
xy <- lm(y~x)
xy
##
## Call:
## lm(formula = y ~ x)
##
## Coefficients:
## (Intercept) x
## 77.86 11.80
That looks better!