Linear Regression

In this chapter we discuss one of the most important topics in statistics. It provides us with a way to determine an algebraic relationship between two variables x and the random variable Y which depends on x and ultimately to use the relationship to predict one variable from knowledge of the other. For instance, is there a relationship between a student’s GPA in high school and the GPA in college? Is there a connection between a father’s intelligence and a daughter’s? Can we predict the price of a stock from the S &P 500 index? These are all matters regression can consider.