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# Assumptions of simple linear regression

Simple linear regression is a parametric test, meaning that it makes certain assumptions about the data. These assumptions are:

Homogeneity of variance (homoscedasticity): the size of the error in our prediction doesn’t change significantly across the values of the independent variable.

Independence of observations: the observations in the dataset were collected using statistically valid sampling methods, and there are no hidden relationships among observations.

Normality: The data follows a normal distribution.

Linear regression makes one additional assumption:

The relationship between the independent and dependent variable is linear: the line of best fit through the data points is a straight line (rather than a curve or some sort of grouping factor).

If your data do not meet the assumptions of homoscedasticity or normality, you may be able to use a nonparametric test instead, such as the Spearman rank test.Example: Data that doesn’t meet the assumptionsYou think there is a linear relationship between cured meat consumption and the incidence of colorectal cancer in the U.S. However, you find that much more data has been collected at high rates of meat consumption than at low rates of meat consumption, with the result that there is much more variation in the estimate of cancer rates at the low range than at the high range. Because the data violate the assumption of homoscedasticity, it doesn’t work for regression, but you perform a Spearman rank test instead.

If your data violate the assumption of independence of observations (e.g. if observations are repeated over time), you may be able to perform a linear mixed-effects model that accounts for the additional structure in the data.

## How to perform a simple linear regression

### Simple linear regression formula

The formula for a simple linear regression is:

y is the predicted value of the dependent variable (y) for any given value of the independent variable (x).

B0 is the intercept, the predicted value of y when the x is 0.

B1 is the regression coefficient – how much we expect y to change as x increases.

x is the independent variable ( the variable we expect is influencing y).

e is the error of the estimate, or how much variation there is in our estimate of the regression coefficient.

Linear regression finds the line of best fit line through your data by searching for the regression coefficient (B1) that minimizes the total error (e) of the model.

While you can perform a linear regression by hand, this is a tedious process, so most people use statistical programs to help them quickly analyze the data.

### Simple linear regression in R

R is a free, powerful, and widely-used statistical program. Download the dataset to try it yourself using our income and happiness example.