Business Mathematics and Statistics · Ch 9 — Correlation and Regression Analysis
Regression Lines and Their Point of Intersection
Regression Lines and Their Point of Intersection
Each regression coefficient of the previous section is the slope of a regression line, used for prediction. Since a regression line is built from data centred on the sample, both regression lines are constructed to pass through the same fixed point — the pair of means .
The Two Regression Lines
Line of on (estimates for a given ):
Line of on (estimates for a given ):
Both equations are satisfied exactly by (substituting these values makes both sides zero) — so the two regression lines, however different their slopes, always intersect at exactly . This single fact is useful in both directions:
- Given the means and the two regression coefficients, both line equations can be written directly, and their intersection verified to be as a check.
- Given only the two regression-line equations (without the means stated separately), solving them simultaneously — exactly as with any pair of linear equations — recovers and , since their unique common solution point is precisely the pair of means.
The line , used to estimate for a given …
The line , used to estimate for a given value of ; both regression lines always intersect at the point of …