Linear regression is a fundamental technique in machine learning, and it forms the basis for many more complex models. At its core, linear regression is all about finding the best-fitting line that represents the relationship between independent variables and a target variable.
Linear regression has both practical and theoretical significance. It allows us to make predictions and infer relationships between variables. Moreover, it provides insights into the strength and direction of these relationships.
Explanation: Imagine you want to predict the price of a house based on its size. Linear regression helps you find a straight line that best fits the historical data of house sizes and prices. This line is called the "regression line."
Example: Suppose you have data on the sizes of different houses and their corresponding sale prices. Linear regression finds the equation of the line
(e.g., Price = 100 * Size + 50,000) that best represents this data. Now, you can use this equation to predict the price of any house based on its size.