Topic 9 - Simple Regression

Question 1

What does regression analysis do

Answer 1

• Used to study the relationship between two variables
• Explaining y in terms of x etc

Question 2

What are the dependent and independent variables in regression analysis

Answer 2

• Dependent: The variable we wish to explain
• Independent: The variable used to explain the dependent variable

Question 3

What is the linear regression model and explain each component

Answer 3

• Y(i) = Beta(0) + Beta(1) * x(i) + epsilon(i)
• Beta(0) = population intercept
• Beta(1) = population slope coefficient
• x(i) = independent variable
• epsilon(i) = random error term