Day 5: Introduction to Linear Regression

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Linear regression analysis is the study of linear, additive relationships between variables. It is also the most widely-used statistical technique. If there is just one explanatory variable, given a scatter plot of multiple points, (x,y), our goal is to find the line that best fits the points. If we are given the value of x, we may be able to estimate the value of the corresponding y.


Source: Wikipedia

For example, it is plausible that there is a rough linear relationship between salary and the number of years of formal education. One would expect to see a line with a positive slope for such a plot where the number of years of formal education is the explanatory variable.

The method of least squares is a popular technique for evaluating the line of best fit. Here are some more detailed notes from Purdue regarding the least squares method.


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