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Why do we find confidence interval for slope and intercept in Simple Linear Regression Model ? What does it indicate?

Milan Amrut Joshi
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For the slope parameter, the CI is useful as another way to measure the strength of the relationship between the dependent and independent variable. If zero is not included in the 95% CI we can say we are 95% confident that there is a true relationship between dependent and independent variable. The confidence interval complements a t-stat and p-value testing if the coefficient is significantly different from zero, that is, a relationship exists.

As for intercept, it is not usually as useful in practice and we don't usually concern ourselves too much about the intercept CI.

BNT
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  • It is fine but why .. can we say that Slope vary ..because we fit a line on training set...but slope is fixed quantity..how it would vary – Milan Amrut Joshi Jan 30 '16 at 06:37