[Verse 1] Start with simple linear lines so straight One X predicts Y, let's not complicate Ordinary least squares finds the best fit way Minimize those squared errors day by day The slope tells us how Y will change and grow When X moves up one unit, this we know [Chorus] R-squared shows the variance we explain Standard error tells us about the pain Beta coefficients are the slopes we need Regression analysis plants the seed From simple lines to models complex and wide Let the data be our statistical guide [Verse 2] Multiple regression brings more X's to play Partial slopes show each one's individual way Holding others constant, see the true effect Adjusted R-squared keeps our model in check When variables dance too close together tight VIF warns us multicollinearity's in sight [Chorus] R-squared shows the variance we explain Standard error tells us about the pain Beta coefficients are the slopes we need Regression analysis plants the seed From simple lines to models complex and wide Let the data be our statistical guide [Bridge] Dummy variables code the qualitative scene Zero or one keeps categories clean Interaction terms show when effects combine Heteroskedasticity breaks the error line Durbin-Watson tests if errors correlate Serial correlation we must investigate [Verse 3] Logistic regression for the binary choice When outcomes are yes-no, it finds the voice Time series models catch the trending flow AR models use the past to help us know Random walks stumble without mean reversion Cointegration stops the long-run dispersion [Chorus] R-squared shows the variance we explain Standard error tells us about the pain Beta coefficients are the slopes we need Regression analysis plants the seed From simple lines to models complex and wide Let the data be our statistical guide [Outro] Unit roots make series non-stationary Transform the data, make it temporary From simple slopes to complex correlation Regression builds our financial foundation
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