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How to Calculate Regression Line

What is Regression Line?

Regression analysis finds the best-fit line (y = mx + b) through a set of data points. It minimizes the sum of squared differences and is fundamental to predictive modeling.

Formula

m = (n×Σxy - Σx×Σy) / (n×Σx² - (Σx)²); b = (Σy - m×Σx) / n

Step-by-Step Guide

  1. 1Input data points (x, y)
  2. 2Calculate sums: Σx, Σy, Σxy, Σx²
  3. 3Compute slope m and intercept b using the formula

Worked Examples

Input
Points: (1,2), (2,4), (3,5)
Result
y ≈ 1.5x + 0.5
Least squares regression line

Common Mistakes to Avoid

  • Confusing correlation with causation
  • Not checking for outliers affecting the line

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