- Linear regression is a statistical method that models the relationship between two variables by fitting a line to the data.
- The line of best fit , given by \[\hat{y} = \beta_0 + \beta_1x + \varepsilon\] is found using the least squares method, which minimizes the squared differences between the observed values (\(y_i\)) and the predicted values (\(\hat{y}_i\)). \[\sum(y_i - \hat{y}_i)^2\]