Regression analysis is used to predict the value of one variable (the dependent
variable) on the basis of other variables (the independent variables).
Dependent variable: denoted Y
Independent variables: denoted X1, X2, …, Xk
If we only have ONE independent variable, the model is
Y 0 1 x1 2 x2 3 X 3 4 x4
Above equation referred to as simple linear regression. We would be interested in
estimating β0 and β1 from the data we collect
We want to see if there is a linear relationship, i.e.
we want to see if the slope ( β ) is something other than zero.
Our research hypothesis becomes: H1: ≠ O
Thus the null hypothesis becomes: H0: = O