Linear Regression
- What is it?
- Models the relationship between variables
- Restrictions?
- numeric data
- sensitive to outliers
- Assumptions?
- normally distributed residuals
- linear relationship
How is Linear Regression Calculated?
- Line of Best Fit \[
\hat{y} = \beta_0 + \beta_1 x
\]
- Least Squares Method
- Minimize Residuals \[
Residual = y_i - \hat{y}_i
\]
- Mean Squared Error
- Find average of squared residuals \[
MSE = \frac{1}{n}\sum_{i=1}^{n} (y_i - \hat{y}_i)^2
\]
Penguins Dataset