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An easy way to help understand simple linear regression is to work through a contrived example. The set of data below gives a regression with a slope of 0 and an intercept of 10, so the line will have the equation Y = 10 + 0X.
(a) Use a statistical package to run the regression. What is the value of r 2 for this relationship? Is the slope of the regression significant?
(b) Next, modify the data to give an intercept of 20, but with a slope that is still 0.
(c) Finally, modify the data to give a negative slope that is significant.
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LINEAR PROGRAMMING MODELS
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