Regression is the statistical approach to find the relationship between variables. Hence, the Linear Regression assumes a linear relationship between variables. Depending on the number of input variables, the regression problem classified into
- Simple linear regression
- Multiple linear regression
Simple Linear Regression Simple linear is an approach for predicting the quantitative response Y based on single predictor variable X.
This is the equation of straight-line having slope β1 and intercept β0.
Let’s start the regression analysis for given advertisement data with simple linear regression. Initially, we will consider the simple linear regression model for the sales and money spent on TV advertising media.
Then the mathematical equation becomes 𝑆𝑎𝑙𝑒𝑠 = 𝛽0 + 𝛽1 * 𝑇𝑉.