In Chapter 1 we discussed the concept of regression in broad terms. In this chapter we approach the subject somewhat formally. Specifically, this and the following two chapter introduce the reader to the theory underlying the simplest possible regression analysis ,namely, the bivariate, or two variable, regression in which the dependent variable ( the regressand ) is related to a single explanatory variable( the regressor). This case is considered first, not because of its practical adequacy, but because it present the fundamental ideas of regression analysis as simply as possible and some of these ideas can be illustrated with the aid of two-dimensional graphs. Moreover, as we shall see, the more general multiple regression analysis in which the regressand in related to one more regressoprs is in many ways a logical extension of the two-variable case.
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