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

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