in a short paragraph explain the principle of simple linear

in a short paragraph, explain the principle of simple linear regression (how is the regression line estimated and how it can be interpreted) to someone without any formal mathematical training; that is, using simple words and no statistical jargon. In a short paragraph, explain whether linear regression is appropriate in the case when the dependent variable is dichotomous (binary).

Solution

The term regression means stepping back towards the average. Regression analysis gives average relationship between two or more variables. The line of regression is the line which gives the best estimate to the value of one variable for any specific value of the other variable. Thus, the line of regression is the line of \"best fit\" and is obtained by the principles of least squares. Let the equation of regression is Y=a+bX. Here b is the slope of the equation and a is the Y-Intercept. The slope is the average change in Y when X increases by 1 while Y-Intercept is the value of Y when X=0.