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? What Is Linear Regression

Linear regression is a statistical method that models the relationship between a dependent variable and one or more independent variables, assuming a linear relationship. It is used to understand the impact of independent variables on the dependent variable, make predictions, and identify trends. There are two main types: simple linear regression, which involves one independent variable, and multiple linear regression, which involves multiple independent variables, with key assumptions including linearity, independence, homoscedasticity, and normality.

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2 views2 pages

? What Is Linear Regression

Linear regression is a statistical method that models the relationship between a dependent variable and one or more independent variables, assuming a linear relationship. It is used to understand the impact of independent variables on the dependent variable, make predictions, and identify trends. There are two main types: simple linear regression, which involves one independent variable, and multiple linear regression, which involves multiple independent variables, with key assumptions including linearity, independence, homoscedasticity, and normality.

Uploaded by

Andrea Navarro
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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📘 What Is Linear Regression?

Linear regression is a basic and widely used statistical method that models the relationship
between a dependent variable (the outcome you want to predict) and one or more
independent variables (predictors or inputs), assuming this relationship is linear—meaning it
can be represented by a straight line.

🔍 Purpose of Linear Regression

Linear regression is used to:

 Understand how changes in independent variables affect the dependent variable.

 Make predictions based on known data.

 Identify trends and patterns in data.

📈 Types of Linear Regression

1. Simple Linear Regression

o One independent variable and one dependent variable.

o Example: Predicting exam scores based on hours of study.

o Equation:

Y=a+bX+eY = a + bX + eY=a+bX+e

Where:

 YYY = dependent variable (e.g., exam score)

 XXX = independent variable (e.g., study hours)

 aaa = intercept (value of YYY when X=0X = 0X=0)

 bbb = slope (change in YYY for every unit change in XXX)

 eee = error term (difference between actual and predicted values)

2. Multiple Linear Regression

o More than one independent variable.


o Example: Predicting house price based on size, location, and number of
bedrooms.

o Equation:

Y=a+b1X1+b2X2+...+bnXn+eY = a + b_1X_1 + b_2X_2 + ... + b_nX_n + eY=a+b1X1+b2X2+...+bnXn


+e

✅ Key Assumptions of Linear Regression

1. Linearity – The relationship between variables is linear.

2. Independence – Observations are independent of each other.

3. Homoscedasticity – The variance of errors is constant across values of XXX.

4. Normality – Errors are normally distributed (especially for inference).

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