6.6 Prediction: Linear model (Equation) (1)

• Linear Model = LM = Linear regression model
• Aim (normally): Model (also understand) relationship between outcome variable und 1+ explanatory variables

$y_{i} = \underbrace{\color{blue}{\beta_{0}} + \color{orange}{\beta _{1}} \times x_{1i} + \color{orange}{\beta _{2}} \times x_{2i}}_{?} + \underbrace{\color{red}{\varepsilon}_{i}}_{?}$