Here it is.

You have probably heard of the regression line right when we plot the data points on an X Y plane.

The regression line is the best fitting line through the data points.

Okay, here's a plot with some data points.

We plant the line based on the regression equation.

The great points that are scattered are the observed values.

Be zero, as we said earlier, is a constant and is the intercept of the regression line with Y axis Be one is the slope of the regression line.

It shows how much why changes for each unit.

Change of X.

The distance between the observed values and the regression line is the estimator of the error term Absalon.

It's point estimate is called residual.

Now, if you draw a perpendicular from an observed point to the regression line, the intercept between that perpendicular and the regression line is a point with a Y value equal toe.

Why hat?