Linear regression model
Linear regression model
The linear regression model describes how the dependent variable is related to the independent
variable(s) and the error term:
ݑ ଵݔଵߚ ߚൌݕ
or
y is the dependent variable (explained, predicted, or response variable)
x is the independent variables (control variables or regressors)
ߚ are unknown parameters to be estimated
o ߚ is the intercept
o ߚଵ is the slope
u is the error term or disturbance