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Introduction to Descriptive Statistics - Simple Linear Regression

[Home] [Up] [Criterion] [OLS] [Assumptions] [Inference] [Multiple Regression] [OLS] [MLE] [Introduction]


Consider the following example of Simple Linear Regression.

BEL20 = -36.863143*BGINF + 384.17353

Introduction to Descriptive Statistics - Simple Linear Regression

This simple regression equation explains the BEL20 composite share index by Belgian inflation and a constant term. The scatter plot clearly shows a negative correlation between BEL20 and BGINF. Can you see obvious violations of the OLS assumptions in this scatterplot?

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