Question

Provide detailed information about the function structures of regression models. (model structure, interpretation of coefficients, graph for the relationship between variables, if any, etc.)

Answer 1

A relation between X and Y as Y = f ( X ) is said to be a regression function.

Nonstochastic regression function:

  Where for each value independent variable x .There is one and only one value of dependent variable Y.

Stochastic regression function:

Where for each value independent variable x .There is a whole probability distribution of values of dependent variable Y. There are many regression models to estimate the correct value of y such as:-

The simple linear regression model, multiple regression model , Log regression model ,The regression model with or without error term ,The regression model with least square estimates etc

Parameters in the regression structure:--

Y = a + b x  

Where x is the independent variable

Y is dependent varial

a is intercept parameter

b is The regression coefficient