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10 steps: (1) Model: ŷ = a + bx (predicted y as linear function of x). (2) Goal: find a,b that minimize Σ(yᵢ-ŷᵢ)² (sum of squared residuals). (3) Formulas: b = Σ(xᵢ-x̄)(yᵢ-ȳ)/Σ(xᵢ-x̄)² = r·(sy/sx). a = ȳ - bx̄. (4) CORRELATION r: measures linear relationship strength. -1≤r≤1. (5) r² = coefficient of

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