7.2 Parameter Estimates

  • Estimate the slope \(\beta_{1}\) and intercept \(\beta_{0}\) using least-squares methods.
  • The residual mean squared error (RMSE) is an estimate of the variance \(s^{2}\)
    • RMSE can also refer to the root mean squared error.
  • Typically interested in inference on \(\beta_{1}\)
    • Assume no relationship between \(X\) and \(Y\) \((H_{0}: \beta_{1}=0)\) until there is reason to believe there is one \((H_{0}: \beta_{1} \neq 0)\)