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How do you calculate the regression equation?

The regression equation is ŷ = b 0 + b 1 x. The regression equation always passes through the centroid, , which is the (mean of x, mean of y). That means you know an x and y coordinate on the line (use the means from step 1) and a slope (from step 2). Subsitute in the values for x, y, and b 1 into the equation for the regression line and solve for the y-intercept, b 0.

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