Statistical Inference about Slope

Key Takeaways

  • The parameter β_1, the slope of the population regression line, is of primary interest because it describes the average change in y with respect to unit increase in x.

  • The statistic \hat{\beta}_{1}, the slope of the least squares regression line, is a point estimate of β_1. Confidence intervals for β_1 can be computed using a formula.

  • Hypotheses regarding β_1 are tested using the same five-step procedures introduced in Chapter 8 "Testing Hypotheses".