Econometrics and Data Science: Apply Data Science Techniques to Model Complex Problems and Implement Solutions for Economic Problems

© The Author(s), under exclusive license to APress Media, LLC, part of Springer Nature 2022

T. C. NokeriEconometrics and Data Sciencehttps://doi.org/10.1007/978-1-4842-7434-7_2

2. Univariate Consumption Study Applying Regression

Tshepo Chris Nokeri¹  

(1)

Pretoria, South Africa

 

This chapter introduces the standard univariate (or simple) linear regression model, called the ordinary least-squares model, which estimates the intercept and slope while diminishing the residuals (see Equation 2-1). It applies the model to determine the relationship between the interest rates that U.S. banks charge for lending and the market value of goods and services that U.S. households consume annually. It includes ways of conducting covariance analysis, correlation analysis, ...