210 / 762
210
Chapter 5: Bivariate Data
The least squares estimates
and
can be computed from the following
formulas. These equations are obtained from minimizing the error sum of
squares with respect to B
0
and B
1
.
Note:
Because of the availability of different technologies, there is no need to
memorize the formulas (or even work with them) when we have real data.
We will illustrate using the Simple Regression workbook.
Notes:
We usually refer to this type of regression analysis as simple
regression analysis since we are dealing with straight-line models
involving one independent variable.
The errors are also called residuals.