Now that you have seen what the components of a regression are, you can see that a regression is a linear model (following the form \(y=b_0+b_1+ \text{error}\)). In our next lesson, we will learn that this same linear model can analyze a categorical variable’s impact on a quantitative (y) variable.
Let’s return to Bob. Bob can now state with confidence that the number of critical features does significantly impact the dollar amount of a land development proposal. Hopefully growing statistical skills will make his work with developers more effective and efficient!