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Figure 1. Example of a simple simulation study. A simulated population was created in which the equation y = 0.4x + error was true. Ten thousand random samples of N = 100 were drawn, and an ordinary least squares regression model, specified as y = bx + error, was estimated for each sample. The regression coefficient b was collected from each of the 10,000 models and plotted here by frequency. The location and shape of such a distribution can be examined to see whether it has the properties we would expect given our model assumptions.
