22. Simple Linear Regression Intuition - Step 1

SIMPLE LINEAR REGRESSION 1

Regressions

• Simple Linear Regression -> y = b0 + b1 * x1

• y is the Dependent variable (DV)

• Something you are trying to understand how it depends on something else

• x1 is the Independent variable (IV)

• so x1 might have an implied association between Independent variable and Dependent variable

• b1 is the coefficient for the dependent variable

• It kind of says how the effect or how a change in x1, a unit change in x1

• Unit changes in x1 how that affects a unit change in Y.

• So it is also the proportion to which that change in inflated or deflated

Simple Linear Regression

• Experience is going to be our horizontal axis (X)

• Salary ($) is going to be our Vertical axis (Y)

• And what that essentially means is just putting a line through your chart that best fits this data

• When the experience is equals to 0, salary will equals to b0 which will be $30,000

• So someone with no experience, assuming fresh from university will most likely have a salary about $30,000

• b1 is the slope of the line

• The steeper the line, the more you get more salary, based on the experience