3.17 Models: Example: Linear model (Equation)

  • Popular of models

  • Linear Model = LM = Linear regression model

  • Aim

    • Relationship: outcome variable und 1+ explanatory variables
yi=β0+β1×x1i+β2×x2iModell=ˆyi=Predicted values+εiError=ˆyi+εi


Name trust2006
y
\boldsymbol{\color{blue}{\beta_{0}}} \boldsymbol{\color{orange}{\beta_{1}}} threat2006
x_{1}
\boldsymbol{\color{orange}{\beta_{2}}} education2006
x_{2}
\boldsymbol{\color{red}{\varepsilon}} \color{green}{\widehat{y}}
Daniel 5 ? ? 1 ? 1 ? ?
Leia 5 ? ? 0 ? 1 ? ?
Harrison 7 ? ? 0 ? 5 ? ?
.. .. .. .. .. .. .. .. ..