Simple linear regression


 

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Simple linear regression

A regression analysis between only two variables, one dependent and the other explanatory.



Simple linear regression

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Regression analysis

Regression analysis

The statistical technique of finding a straight line that approximates the information in a group of data points. Used throughout empirical economics, including in both international trade and finance.


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A mathematical technique used to explain and/or predict. The general form is Y = a + bX + u, where Y is the variable that we are trying to predict; X is the variable that we are using to predict Y, a is the intercept; b is the slope, and u is the regression residual. The a and b are chosen in a way to minimize the squared sum of the residuals. The ability to fit or explain is measured by the R-square.


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regression analysis
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