In the context of linear regression, whether it’s simple linear regression (with one independent variable) or multiple linear regression (with two or more independent variables), the term “intercept” refers to a constant value in the regression equation. This constant represents the expected or predicted value of the dependent variable when all independent variables are set to zero. The intercept is also known as the “y-intercept” because it’s the point where the regression line crosses the y-axis on a scatterplot.
- Simple Linear Regression Intercept:
– In simple linear regression, you have one independent variable (X) and one coefficient (slope) associated with it (usually denoted as β1).
– The equation for simple linear regression is typically represented as: Y = β0 + β1 * X + ε, where β0 is the intercept.
- Multiple Linear Regression Intercept:
– In multiple linear regression, you have two or more independent variables (X1, X2, X3, etc.) and a corresponding set of coefficients (β1, β2, β3, etc.).
– The equation for multiple linear regression is: Y = β0 + β1 * X1 + β2 * X2 + β3 * X3 + … + ε, where β0 is the intercept.
In both cases, the intercept (β0) represents the estimated value of the dependent variable when all independent variables are zero. It’s an essential component of the regression equation and helps determine the starting point of the regression line or hyperplane in the feature space. The slope coefficients (β1, β2, β3, etc.) quantify the effect of each independent variable on the dependent variable, while the intercept represents the constant or baseline value when all independent variables have no effect.