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Consider the following Simple Regression Model: Y = β1 + β2X + Ɛ What does the...

Consider the following Simple Regression Model: Y = β1 + β2X + Ɛ

What does the following symbol represent: Y, β1, β2, X, and Ɛ?

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Answer #1
  • Y is called the dependent variable ,which is dependent on X . Y is also called as the values which are being predicted or explained .
  • BETA 1 is called as the intercept of the regression line .
  • BETA 2 is called as the slope of the regression line and the coefficient of X which tells how much Y changes for each one unit in X .
  • X is called the independent variable which is predicting a or explaining the values of Y
  • (epsilon) is called the error term in the regressipn line equation .

I HOPE I WAS HELPFUL AND HAVE CLEARED YOUR DOUBTS.

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