Page 44 - BA2 Integrated Workbook - Student 2017
P. 44

Chapter 3




               2.2   Equation of a straight line

               With the high-low method only two observations are used and a linear relationship is
               assumed. However these two extreme points may hide the true relationship between
               the variables.



                 y
                 ion
















                                                         x


               Consider the equation of a straight line:

               y = a + bx

               where:         y = dependent variable

                              x = independent variable


                              a = intercept on y-axis

                              b = gradient of the line























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