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Unformatted text preview: Simple Linear Regression Model The equation that describes how y is related to x and an error term is called the regression model. The simple linear regression model is: y = b 0 + b 1 x +e where: b0 and b1 are called parameters of the model, e is a random variable called the error term. Estimation Process Regression Model y = b 0 + b 1 x +e Regression Equation E(y) = b 0 + b 1x Unknown Parameters b 0, b 1 b0 and b1 provide estimates of b 0 and b 1 Sample Data: x y x1 y1 . . . . xn yn Estimated Regression Equation ˆ y b0 b1 x Sample Statistics b0 , b1 Estimation Process Population Random Sample Unknown Relationship ˆ ˆ ˆ Yi b 0 b1 X i e i Yi b 0 b1X i e i Sampling distribution of slope Y Sample 1 Line All Sample 2 Line Population Line X Sampling Distribution ^ Sb 1 b1 Possible Sample Slopes Sample 1: 2.5 Sample 2: 1.6 Sample 3: 1.8 Sample 4: 2...
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This note was uploaded on 09/28/2011 for the course STAT METHO 33:623:385 taught by Professor Faridalizadeh during the Spring '11 term at Rutgers.

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