Model: $$y_i+\beta_0+\beta_ix_i+\epsilon_i$$$$E[\epsilon_i|x]=0$$$$E[\epsilon]$$ data: ![[Excalidraw/Drawing 2021-09-01 15.04.21.excalidraw.md]] regression estimation: choose line that best fits data [[arg]] $$(\hat{b_o},\hat{b_1})=arg \min_{b_0,b_1}\sum_{=1}^{n}{(y_i+(b_0+b_1x_i)^2)}$$