Simple linear regression from raw data
Simple linear regression from raw data Let $(x_i, y_i), i=1,2, \cdots , n$ be $n$ pairs of observations.
The simple linear regression model of $Y$ on $X$ is
$$y_i=\beta_0 + \beta_1x_i +e_i$$ where,
$y$ is a dependent variable, $x$ is an independent variable, $\beta_0$ is an intercept, $\beta_1$ is the slope, $e$ is the error term. Formula By the method of least square, the model parameters $\beta_0$ and $\beta_1$ can be estimated as