Linear regression

Linear regression is a statistical method used for modeling the relationship between a dependent variable and one or more independent variables (independent variable).

The linear relationship is represented by the equation of a line: \(y=mx+b\).

The goal of linear regression is to find values of \(m\) and \(b\) that minimizes the difference between the predicted values and the actual values.

The actual value (\(y\)) differs from the predicted value (\(\hat y\)) by a random amount \(\epsilon\): \(y = \hat y + \epsilon\)