The model for simple linear regression is

where

• Y_i is the value of the response variable in the i^th trial
•  and  are parameters that we will estimate.
• X_i is a known constant, namely, the value of the independent variable in the i^th trial
•  is the random error term.  For the general model, the error terms have a mean of zero and constant variance.  The commonly used Normal model includes the additional assumption that the error terms are also normally distributed.  This is the model that we will use throughout this tutorial.  
• The random error terms are uncorrelated.

For more details about the Regression Model, click here

Otherwise, learn the General Procedure for calculating the Regression Equation.

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