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LINEAR REGRESSION: What it Is and How it Works Overview • What is Bivariate Linear Regression? • The Regression Equation • How It’s Based on r What is Bivariate Linear Regression? • Predict future scores on Y based on measured scores on X • Predictions are based on a correlation from a sample where both X and Y were measured Why is it Bivariate? • Two variables: X and Y • X - independent variable/predictor variable • Y - dependent/outcome/criterion variable Why is it Linear? • Based on the linear relationship (correlation) between X and Y • The relationship can be described by the equation for a straight line The Regression Equation y = b0+ b1xi + ei y = predicted score on criterion variable b0 = intercept xi = measured score on predictor variable b1 = slope ei = residual (error score) Regression Lines Least-Squares Solution • Minimize squared error in prediction. • Error (residual) = difference between predicted y and actual y Residuals How It’s Based on r Replace x and y with zX and zY: zY = bo + b1zX and the y-intercept becomes 0: zY = b1zX and the slope becomes r: zY = rzX Take-Home Point • Linear regression is a way of using information about a correlation to make predictions