Imagine you are at a new marketing job. You have a set of data in Excel in front of you about sales numbers, and a scatter plot of those data points in a graphing calculator on your desk. Your boss comes by and asks you to give a regression analysis of the data by noon — he needs to know the trend line of the sales. You rack your brain for how to find the line of best fit, remembering that it involves something with finding a straight line on a scatter plot. What do you do?
The least squares regression is a simple linear regression analysis that is used to find the slope of the line that best fits or represents a set of data points.
A linear equation represents the linear relationship between the x-values and y-values of the points on a graph or chart.