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Independent
(It is an expected condition that the individuals in the study are unaffected by one another.)
What formula is this:
ŷ = a + bx
What do the symbols mean in the following equation:
ŷ = a + bx
a = y intercept
b = slope
x = x variable used to predict y
residual = observed y - predicted y
(or = y − ŷ )
1) Linearity (straight line)
2) Normality
3) Independence (no matched pairs, blocking, etc)
4) Equal standard deviations (no funnels)
That there is no linear relationship between x and y in the population.
or
The mean of y does not change at all when x changes.
So, H_{0}: β = 0 means there is no relationship.
Historically, returns on investments in the stock market are about 7% per year. The 7% figure is a:
Population p
sample p
not a p
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