Chapter8

# Chapter8 - Chapter 8 Linear Regression Model We can model...

This preview shows pages 1–6. Sign up to view the full content.

Chapter 8 Linear Regression

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Model We can model the relationship between 2 quantitative variables with a line and give its equation. The equation will let us predict a response (y) value given an explanatory (x) value. Clearly no line can go through all the points (unless the correlation is –1 or 1). The linear model is just an equation of a straight line through the data. The points in the scatterplot don’t all line up, but a straight line can summarize the general pattern.
Residual We call the estimate made from a model the predicted value, and write it as (called y-hat). The difference between the observed value and its associated predicted value is called the residual. ^ y

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
(cont.) The residual value tells us how far off the model’s prediction is at that point. To find the residuals, we always subtract the predicted value from the observed one. ^ Residual y y - =
Line of Best Fit The line of best fit is the line for which the sum of the squared residuals is smallest.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern