Let's first understand what linear regression is. It is an effort to model and find out the existing linear relationship between given variables by fitting a linear equation to the observed data of given variables. One of the variables is considered to be dependent variable, and others are considered to be independent variables or explanatory variables. Linear regression is a technique that's used industry-wide. It is one of the most famous techniques in the analytics industry and has a lot of uses, such as the prediction of any continuous variables—rainfall, sales, sensor outputs, loan default amount, and so on.

Linear regression is one of the simplest techniques as well. It is widely used in healthcare, FMCG/CPG/retain goods, finance, marketing, and so on. There are various linear regression methods that are listed as you read the chapter in detail. One of the most leveraged methods is the ordinary least squares method. This chapter will prepare you for statistical modeling...