Statistical Analysis of Simple Linear Regression

Regression is unarguably one of the most used models in data science and statistics. It is prevalent in almost every field in industry and academia. I will go through in this blog the statistical concepts involved in Simple Linear Regression i.e. regression involving only one predictor variable. The readers are assumed to have some basic knowledge of probability theory and statistics, although I have given references to the concepts. Now, we need to estimate the parameters (Beta_0, Beta_1) of model and also the value of sigma squared, which is the variance of error term.