DEFINITION of 'Linear Relationship'
A statistical term used to describe the relationship between a variable and a constant. Linear relationships can be expressed in a graphical format where the variable and the constant are connected via a straight line or in a mathematical format where the independent variable is multiplied by the slope coefficient, added by a constant, which determines the dependent variable.
INVESTOPEDIA EXPLAINS 'Linear Relationship'
For example, assume that the independent variable is the size of a house (as measured by square footage), determines the market price of a home (the dependent variable), when it is multiplied by the slope coefficient of 207.65 and is then added to the constant term $10,500. If a home's square footage is 1,250 then the market value the home is $270,062.50. Graphically, and mathematically:
In this example, as the size of the house increases, the market value of the house increases in a linear fashion.

Nonlinearity
A relationship which cannot be explained as a linear combination ... 
Least Squares Method
A statistical technique to determine the line of best fit for ... 
Stepwise Regression
The stepbystep iterative construction of a regression model ... 
Characteristic Line
A line formed using regression analysis that summarizes a particular ... 
Statistics
A type of mathematical analysis involving the use of quantified ... 
Beta
A measure of the volatility, or systematic risk, of a security ...

Budgeting
Mortgages: How Much Can You Afford?

Trading Strategies
What is the difference between a logarithmic ...

Credit & Loans
Mortgage Basics

Fundamental Analysis
Lognormal and Normal Distribution