Question

Identify a practical (real world) application of the simple linear regression model of your choice. Define the dependent and independent variables and the regression model. Explain the process by which you would go about developing the estimated regression equation. Describe the pros and cons of your model.

Answer 1

To give you an insight of simple linear regression lets take the most recent example of corona virus.

So in this i would like to see the pattern of number of casualities and the number of patients.

My dependent variable here would be the number of recoveries and the independent variable would be number of patients.

So basically i will collect the data for all the countries and fit a simple linear regression line taking y as number of recoveries that is dependent variable and x as number of patients that is independent variable.

After collecting the data i would esimate the regression coefficients and then predict the value of number of recoveries.

Pros

i) i will be able to predict the number of recoveries which would help me in dealing with the situation more accurately.

ii) after the number of recoveries i can find the percent of people recovered which would give me a good insight of the proportion.

iii) if for some country only the number of patients data is available i can predict the number of recoveries there.

Cons

i) There must be some other independent variables affecting my conclusion such as the country.

ii) Even the age factor will affect the conclusion and as age factor is not considered in my case it might give some inconsistent results.