Concept explainers
Answer: Regression analysis is concerned with the study of the dependence of one variable, the dependent variable, on one or more other variables, the explanatory variables.
The two - variable linear model, or simple regression analysis, is used for testing hypothesis about the relationship between a dependent variable Y and an independent or explanatory variable X and for prediction. Simple linear regression analysis usually begins by plotting the set of XY values on a scatter diagram and determining by inspection if there exists an approximate linear relationship. It's model is,
Where = intercept or constant and = Slope or coefficient of regressor, e = Error term
In above example Y = The number of pounds of steam usage
X = The average monthly temperature
Fit the regression model Y to X is
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