Simple Regression | Business Statistics (STAT101)

This video gives an overview to simple linear regression that refers a model which constructs a line of best fit for a bivariate relationship. In business statistics, a simple linear regression is the least squares estimator of a linear regression model with a single explanatory variable. The video gives an example introducing a line of best fit to calculate relationship between education in years and income.

Next, the video discusses about the key things e.g., strength of relationships, inferences about population parameters and prediction that are concerned with the line of best fit in a simple linear regression. Moving on, the video shows the constructions & derivations of formulas used in simple linear regression by using appropriate examples.

Good understanding on simple linear regression is required as it can tell something about how population parameters behave and can help to make educated predictions by extrapolating the curves. In other words, in simple linear regression one can easily predict scores of one variable from the scores of another variable.