22. Simple Linear Regression Intuition - Step 1

SIMPLE LINEAR REGRESSION 1

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

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

Last updated 6 years ago

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

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

Last updated 6 years ago