Chapter 2 Simple linear regression

The simple linear regression is a simple but useful statistical model. In short, it allows to analyze 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!