This chapter discusses basic estimation techniques for simple linear regression models. It covers determining the sample regression line using the method of least squares to estimate the true regression line. It also discusses evaluating whether the slope parameter is statistically significant using t-tests, p-values, and the F-test. Finally, it briefly introduces multiple regression models, quadratic regression, and log-linear regression models.

1. Chapter 4 Basic Estimation Techniques

4. Sample Regression Line (Figure 4.2) 4- A 0 8,000 2,000 10,000 4,000 6,000 10,000 20,000 30,000 40,000 50,000 60,000 70,000 Advertising expenditures (dollars) Sales (dollars) S • • • • • • • e i

6. Relative Frequency Distribution* (Figure 4.3) 4- 0 8 2 10 4 6 1 1 3 5 7 9 *Also called a probability density function (pdf)

16. Log-Linear Regression Models 4- • • • • •