16.2 Topics to cover

  • Fitting a straight sine by Least Squares (LS)
  • The Analysis of variance (ANOVA)
  • Confidence intervals and test for β
  • Dummy variables
  • Multicollinearity
  • Non-linear relationships

Basic Prerequisite Knowledge to Tackle Regression

  • Distributions: Normal, t and F.
  • Confidence Intervals and Hypothesis Testing.
  • Elements of Matrix Algebra

16.2.1 Our Monet Case

Let’s revisit the example with Monet Paintings. In Section 6.5.1 we observe a linear relationship between Price and Size.

Created with Highcharts 8.1.2log(AREA)log(PRICE)x = 6.67y = 0.32log(AREA) vs log(PRICE)Fit3.544.555.566.577.588.5-6-4-2024




Source:A Shiny app for simple linear regression by hand and in R