the dependent variable There may be spurious correlation between two variables. In regression there is no such spurious regression It has limited application, because it is confined only to linear relationship between the variables It has wider application, as it studies linear and nonlinear relationship between the variables It is not very useful for further mathematical treatment. It is widely used for further mathematical treatment Two Regression lines X on Y => X = a + by Y on X => Y = a + bx Regression line is the line which gives the best estimate of one variable from the value of any other given variable. The line gives the average relationship between the two variables in mathematical form.
The line of regression is the line which gives the best estimate to the value of one variable for any specific value of the other variable. To fit Regression equations X on Y and Y on X the following examples are given Ex : Fit two regression equation X on Y and Y on X for the following data. X̅ = , Y = , σy= . , σx = .
and r = . - - Introduction to Statistical Methods and Econometrics