Index: The Book of Statistical ProofsStatistical ModelsUnivariate normal dataSimple linear regression ▷ Definition

Definition: Let $y$ and $x$ be two $n \times 1$ vectors.

Then, a statement asserting a linear relationship between $x$ and $y$

\[\label{eq:slr-model} y = \beta_0 + \beta_1 x + \varepsilon \; ,\]

together with a statement asserting a normal distribution for $\varepsilon$

\[\label{eq:slr-noise} \varepsilon \sim \mathcal{N}(0, \sigma^2 V)\]

is called a univariate simple regression model or simply, “simple linear regression”.

  • $y$ is called “dependent variable”, “measured data” or “signal”;

  • $x$ is called “independent variable”, “predictor” or “covariate”;

  • $V$ is called “covariance matrix” or “covariance structure”;

  • $\beta_1$ is called “slope of the regression line”;

  • $\beta_0$ is called “intercept of the regression line”;

  • $\varepsilon$ is called “noise”, “errors” or “error terms”;

  • $\sigma^2$ is called “noise variance” or “error variance”;

  • $n$ is the number of observations.

When the covariance structure $V$ is equal to the $n \times n$ identity matrix, this is called simple linear regression with independent and identically distributed (i.i.d.) observations:

\[\label{eq:mlr-noise-iid} V = I_n \quad \Rightarrow \quad \varepsilon \sim \mathcal{N}(0, \sigma^2 I_n) \quad \Rightarrow \quad \varepsilon_i \overset{\text{i.i.d.}}{\sim} \mathcal{N}(0, \sigma^2) \; .\]

In this case, the linear regression model can also be written as

\[\label{eq:slr-model-sum} y_i = \beta_0 + \beta_1 x_i + \varepsilon_i, \; \varepsilon_i \sim \mathcal{N}(0, \sigma^2) \; .\]

Otherwise, it is called simple linear regression with correlated observations.

 
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Metadata: ID: D163 | shortcut: slr | author: JoramSoch | date: 2021-10-27, 07:07.