Chapter 2 Simple linear regression
The simple linear regression is a simple but useful statistical model. In short, it allows to analyse the (assumed) linear relation between two variables, \(X\) and \(Y\) in a proper way. It does it by considering the model \[ Y=\beta_0+\beta_1X+\varepsilon \] which in Chapter 3 will be extended to multiple linear regression.
To convince you why simple linear regression is useful, let’s begin by seeing what it can do in real-case scenarios!