Simple Linear Regression

This chapter covers an introduction to simple linear regression. This extends the concept of correlation from Chapter 3 , and involves estimating the relationship between two variables. We also cover the main concepts for the ordinary least squares method in this chapter, which is the core for the next chapters. Hypothesis testing of regression coefficients is also covered, and the focus is on relating the output from Gretl and R to what we can obtain manually when working with a small dataset.