Intercept Constant

The constant term in linear regression analysis seems to be such a simple thing.
Also known as the y intercept, it is simply the value at which the fitted line crosses
the y-axis.
Intercept means the value of response variable when all dependent variables are
zero. Sometime your intercept does not have a meaning. for example, “Y" is age
and "X” persons height. there is no meaning interpreting height zero person. But
imaging “X" variable is temperature of the day and response "Y” sales of an ice
cream.

The slope-intercept form of a line is y = mx + b, where m is the slope of the line

and b is the y-intercept.
Y-intercept:
The y-intercept is the point at which the line crosses the y-axis; the value of x
must be 0 at the y-intercept, because the y-axis is stationed at x = 0 on the graph.
Consequently, to find the y-intercept, substitute 0 for x in our equation and
calculate y.
For equations of the form y = mx + b, this is especially easy; if x = 0, the first term
(m times x) will be 0, so y will equal b. Thus, the constant b in a linear equation is
the value of y at the y-intercept, while the constant m is the slope of the line
 Residuals
The difference between the observed value of the dependent variable (y) and the
predicted value (ŷ) is called the residual (e). Each data point has one residual.
Residual = Observed value - Predicted value
e=y-ŷ
Both the sum and the mean of the residuals are equal to zero. That is, Σ e = 0 and
e = 0.

Regression Analysis:
The definition and meaning of regression analysis, in statistical modeling, is a way
of mathematically sorting out a series of variables to determine which ones have
an impact and how they relate to one another. OR
Regression analysis is a mathematical measure of the averages relationship
between two or more variable in terms of the original units of data.

Types of Regression
(i) Simple Regression (Two Variable at a time)
(ii) Multiple Regression (More than two variables at a time)
 Linear Regression: If the regression curve is a straight line then there is a
linear regression between the variables.
 Non-linear Regression/ Curvilinear Regression: If the regression curve is
not a straight line then there is a non-linear regression between the
variables.
Advantages of Regression Analysis:
1. Regression analysis provides estimates of values of the dependent variables
from the values of independent variables.
2. Regression analysis also helps to obtain a measure of the error involved in
using the regression line as a basis for estimations.
3. Regression analysis helps in obtaining a measure of the degree of
association or correlation that exists between the two variables.
Properties of the Regression Coefficients
1. The coefficient of correlation is geometric mean of the two regression
coefficients. r = √ byx*bxy
2. If byx is positive than bxy should also be positive & vice versa.
3. If one regression coefficient is greater than one the other must be less than
one.
4. The coefficient of correlation will have the same sign as that our regression
coefficient.
5. Arithmetic mean of byx & bxy is equal to or greater than coefficient of
correlation. ( byx+bxy/2)≥r
6. Regression coefficient are independent of origin but not of scale.