Intro to Business Statistics

study guides for every class

that actually explain what's on your next test

Linear

from class:

Intro to Business Statistics

Definition

In statistics, 'linear' refers to relationships or functions that can be graphically represented as a straight line. Linear equations and models are used to describe the relationship between two variables.

5 Must Know Facts For Your Next Test

  1. A linear relationship between two variables can be represented by the equation $y = mx + b$, where $m$ is the slope and $b$ is the y-intercept.
  2. The correlation coefficient $r$ measures the strength and direction of a linear relationship between two variables.
  3. In a scatter plot, a strong linear relationship will show data points closely clustered around a straight line.
  4. A positive correlation coefficient indicates a positive linear relationship, while a negative coefficient indicates a negative linear relationship.
  5. The value of $r$ ranges from -1 to 1; an $r$ of 0 indicates no linear relationship.

Review Questions

  • What does the slope ($m$) represent in a linear equation?
  • How would you interpret an $r$ value of -0.85?
  • What type of graph is typically used to visualize a linear relationship?
ยฉ 2024 Fiveable Inc. All rights reserved.
APยฎ and SATยฎ are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
Glossary
Guides