Inside of the Linear Relation between Dependent and Independent Variables

Figure 1

Flowchart of the implemented method. The starting values of the “” (coefficient of the independent variable), “” (population mean), and “” (population standard deviation) coefficients are those obtained by least squares estimation method while the imposed value of power of the errors is equal to 2. The algorithm that maximizes likelihood finds optimal solution for “,” “,” “,” and “” that satisfy (6).