Simple linear regression: Difference between revisions

Content deleted Content added
Line 45:
 
== Numerical example ==
 
Suppose we have the sample of points {(1,-1),(2,4),(6,3)}. The mean of X is 3 and the mean of Y is 2. The slope coefficient estimate is given by:
 
: <math> \hat{b} = \frac {(1 - 3)((-1) - 2) + (2 - 3)(4 - 2) + (6 - 3)(3 - 2)} {(1 - 3)^2 + (2 - 3)^2 + (6 - 3)^2 } = 7/14 = 0.5. </math>
 
The standard error of the coefficient is 0.866. A 95% confidence interval is given by