Simple Linear Regression 39
■ (^) The parameters of a simple linear regression model are estimated using
the method of ordinary least squares and provides a best linear unbi-
ased estimate of the parameter.
■ (^) The coefficient of determination, denoted by R^2 , is a measure of the
goodness-of-fit of the regression line. This measure, which has a value
that ranges from 0 to 1, indicates the percentage of the total sum of
squares explained by the explanatory variable in a simple linear
regression.