Analysis of Variance
Sometimes the simple linear regression model does not describe the relationship between two variables. To use regression analysis effectively, we must be able to differentiate the two cases. Breaking down the sum of squares total into its components. The sum…
Assumptions of the Simple Linear Regression Model
Before we can draw conclusions, we need to make the following key assumptions. Linearity: A linear relationship exists between the dependent variable, Y, and independent variable X. Homoskedasticity: For all observations, the variance of the regression residuals is the same….
Dependent and Independent Variables
Linear regression attempts to forecast the value of a dependent variable given the value of an independent variable. It assumes that there is a linear relationship between dependent and independent variables. A Simple Linear Regression relates a dependent and one…
