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Regression
Regression
Y = mX + b 12
10
8
Y = Dependent variable
Y
6
DY
X = Independent variable 4
DX
m = slope = DY/DX 2
0
b = y-intercept (point where 0 5 10 15 20 25
40,000
Average Income Level ($ per year)
35,000
30,000
25,000
20,000
15,000
10 15 20 25 30 35
26,000
Average Income Level ($ per year)
25,500
25,000
24,500
24,000
23,500
23,000
22,500
22,000
15 15.5 16 16.5 17 17.5 18 18.5 19 19.5 20