Simple Linear Regression:
A dependent variable (Y) and an independent variable (X) are modelled using simple linear regression, a statistical technique. It presumes that there is a linear relationship between them, meaning that changes to X cause proportionate changes to Y. The objective is to identify the line that minimises the total of squared differences between the observed data points and the line’s projected values, typically denoted as Y = axe + b.
In a simple linear regression, ‘a’ stands for the slope of the line, which reflects how much Y changes for a one-unit change in X, and ‘b’ stands for the intercept, which represents the value of Y when X is zero.
Multiple Linear Regression
The extension of simple linear regression to incorporate many independent variables is known as multiple linear regression. It simulates the relationship between a number of independent variables (X1, X2, X3, etc.) and a dependent variable (Y). The formula for the equation is written as Y = a1X1 + a2X2 + a3X3 +… + b, where ‘a1’, ‘a2’, ‘a3’, etc., are the coefficients that indicate the influence of each independent variable on the dependent variable, and ‘b’ is the intercept.
We can examine the combined effects of numerous predictors on the response variable using multiple linear regression. It is commonly used to make predictions and comprehend complex relationships in a variety of disciplines, including economics, finance, and the social sciences.