Economics - Econometrics - Regression analysis - Simple Linear Regression
A step-by-step regression example. 'Question: How does education affect income?' Data: 8 observations of (years of education, annual income in $000s). Step 1: Plot scatter diagram - show positive relationship. Step 2: 'The line of best fit: Income = β₀ + β₁ × Education.' Step 3: Using least squares:
