Class 03_Part 01: Simple Linear Regression

In this video, we dive into the basics of simple regression, a foundational concept in statistics and econometrics. We start by explaining what simple regression is and how it models the relationship between two variables using a straightforward equation. You'll learn how to interpret the coefficients—the intercept and slope—and understand their significance in predicting outcomes. We'll also cover the concept of residuals, which represent the errors in our predictions, and explore the goodness of fit using R-squared, a key measure of how well our model explains the data. Finally, we discuss the OLS (Ordinary Least Squares) method, which helps us estimate the best-fitting line for our data.

Code, lecture, and data: https://github.com/takyurp09/economet...
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Website: https://takyurp09.github.io/

*Acknowledgment: We adopted most of the code from econometricsacademy. One big shout out to them.*