Simple Linear Regression

The goal of simple linear regression is to

create a linear model that minimizes the
sum of square of the residuals/error (SSE)

Simple linear regression is used when we

only have one variable. We will predict the
outcome by taking the mean of the given
data.

This line will be considered as goodness of

fit. ( The goodness of fit of a statistical model
describes how well it fits a set of observations.
Measures of goodness of fit typically summarize
the discrepancy between observed values and the
values expected under the model in question.)

Residuals are the distance between the

mean line to the observe values. We
square the residual in order get the values
into positives and emphasize the larger
deviations. If our regression model is
significant.it will eat up much of the raw
SSE we had when assumed that the
independent variable did not even exist. The regression line will literally fit the data better. It will

minimize the residuals

Correlation and ANOVA when combine will give

linear regression. The value of depnedent
variable y is a fuction of independent varibale x.