Least Squares Estimate Using a Monte Carlo Method
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In the frame on the right, an estimate is made of the true slope and intercept for each repeated random sample. It is well-known that the covariance between intercept and slope estimates is negative. In this frame, you can observe this well-known relationship by observing the general motion of the "blue dot" as you vary the sample size and repeated random samples.
Contributed by: Richard Simson (March 2011)
Open content licensed under CC BY-NC-SA
"Least Squares Estimate Using a Monte Carlo Method"
Wolfram Demonstrations Project
Published: March 7 2011