1.

Define Linear Regression .

Answer»

A regression model expressing the dependent variable Y as a linear function of independent variable X is called a

Linear regression model. It is of the following form :

Y = α + βx + u
Where, Y = Dependent variable
X = Independent variable α,
β = Constants
u = Disturbance variable of model

Variable u shows the incompletness of Linear correlation between two variables X and Y.

  • If there is perfect linear correlation between two variables X and Y, then the linear regression model is of the form
    Y = α + β X. In such case the value of disturbance variable u will be 0 (zero).
  • If there is partial linear correlation between two variables X and Y, the form of linear regression- model is
    Y = α +βx + u.


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