The Least-Squares Regression Line
The least-squares regression line (LSRL)
Where:
- (read "y-hat") = predicted value of the response variable
- = y-intercept (predicted when )
- = slope (change in predicted for each 1-unit increase in )
- = value of the explanatory variable
Formulas for slope and intercept:
Where is the correlation, and are the standard deviations, and , are the means.
Key fact: The LSRL always passes through the point .