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Design matrix
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===Simple linear regression=== This section gives an example of [[simple linear regression]]—that is, regression with only a single explanatory variable—with seven observations. The seven data points are {''y''<sub>''i''</sub>, ''x''<sub>''i''</sub>}, for ''i'' = 1, 2, …, 7. The simple linear regression model is : <math> y_i = \beta_0 + \beta_1 x_i +\varepsilon_i, \,</math> where <math> \beta_0 </math> is the ''y''-intercept and <math>\beta_1</math> is the slope of the regression line. This model can be represented in matrix form as :<math> \begin{bmatrix}y_1 \\ y_2 \\ y_3 \\ y_4 \\ y_5 \\ y_6 \\ y_7 \end{bmatrix} = \begin{bmatrix}1 & x_1 \\1 & x_2 \\1 & x_3 \\1 & x_4 \\1 & x_5 \\1 & x_6 \\ 1 & x_7 \end{bmatrix} \begin{bmatrix} \beta_0 \\ \beta_1 \end{bmatrix} + \begin{bmatrix} \varepsilon_1 \\ \varepsilon_2 \\ \varepsilon_3 \\ \varepsilon_4 \\ \varepsilon_5 \\ \varepsilon_6 \\ \varepsilon_7 \end{bmatrix} </math> where the first column of 1s in the design matrix allows estimation of the ''y''-intercept while the second column contains the ''x''-values associated with the corresponding ''y''-values. The matrix whose columns are 1's and ''x'''s in this example is the design matrix.
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