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rises from left to the right and has positive slope. This line can be used to establish an approximate relation between the random variable ABY and the independent variable X. It is nonmathematical method in the sense that different persons may draw different lines. This line is called the regression line obtained by inspection or judgment.
Making a scatter diagram and drawing a line or curve is the primary investigation to assess the type of relationship between the variables. The knowledge gained from the scatter diagram can be used for further analysis of the data. In most of the cases the diagrams are not as simple as in figure (a). There are quite complicated diagrams and it is difficult to choose a proper mathematical model for representing the original data. The scatter diagram gives an indication of the appropriate model which should be used for further analysis with the help of method of least squares. Figure (b) shows that the points in the scatter diagram are falling from the top left corner to the right. This is a relation called inverse or indirect. The points are in the neighborhood of a certain line called the regression line. |

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