Lecture 9: Linear Regression
Lecture 9: Linear Regression
Goals
? Develop basic concepts of linear regression from a probabilistic framework
? Estimating parameters and hypothesis testing with linear models
? Linear regression in R
Regression
? Technique used for the modeling and analysis of numerical data
? Exploits the relationship between two or more variables so that we can gain information about one of them through knowing values of the other
? Regression can be used for prediction, estimation, hypothesis testing, and modeling causal relationships
Regression Lingo
Y = X1 + X2 + X3
Dependent Variable Outcome Variable Response Variable
Independent Variable Predictor Variable Explanatory Variable
Why Linear Regression?
? Suppose we want to model the dependent variable Y in terms of three predictors, X1, X2, X3
Y = f(X1, X2, X3)
? Typically will not have enough data to try and directly estimate f
? Therefore, we usually have to assume that it has some restricted form, such as linear
Y = X1 + X2 + X3
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