9.1.3 Model quality and statistical significance. We will come back to the question of whether the linear model is valid (whether it satisfies the assumptions of the technique). First we want to ...

- Simple linear regression formula. As detailed above, the formula for simple linear regression is: or. for each data point - Simple linear regression model – worked example. Let’s say we are ...

One key assumption is that the errors are independent of each other. However, with time series data, the ordinary regression residuals usually are correlated over time. It is not desirable to use ...