Regression Equation Line- Approximating Curve Line – Trend Line – Best Fit Line -Least Squares Line

Regression is estimation(correlation) – of the independent variable with the dependent variable.(We can make a scatter plot whenever you have data that relates two values together).

We need an equation – which models the data for y(dependent) for any x(independent), that is, the correlation between them.

If the data points moves up – there is a positive slope/correlation – and vice versa down a negative slope/correlation. If the data points  are all over the place there is no correlation.

Given n(number of data points), the formula for the basic regression line is y^ = mx + b

To find m(the slope), which represents the predictive direction and change rate, we use the following formula:

m = (n∑xy-∑x∑y)/(n∑x²-(∑x)²)

To find b(the y intercept), which represents the bias when there is no information regarding x, we use the following:

b = (∑y-m∑x)/n

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