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Chapter 67: Ordinary Least-Squares Regression
Ordinary least-squares (OLS) regression is a generalized linear modelling technique that may be used to model a single response variable which has been recorded on at least an interval scale. The technique may be applied to single or multiple explanatory variables and also categorical explanatory variables that have been appropriately coded.
At a very basic level, the relationship between a continuous response variable (Y) and a continuous explanatory variable (X) may be represented using a line of best fit, where Y is predicted, at least to some extent, by X. If this relationship is linear, it may be appropriately represented mathematically using the straight line equation ‘Y = α + βx’, as shown in Figure 58 (this line was computed using ...