We often come across situations where we would need to create an approximate model from some sample data. This model can then be used to predict more such data when its required parameters are supplied. For example, we might want to study the frequency of rainfall on a given day in a particular city, which we will assume varies depending on the humidity on that day. A formulated model could be useful in predicting the possibility of rainfall on a given day if we know the humidity on that day. We start formulating a model from some data by first fitting a straight line (that is, an equation) with some parameters and coefficients over this data. This type of model is called a linear regression model. We can think of linear regression as a way of fitting a straight line, , over the sample data, if we assume that the sample data has only a single dimension.
The linear regression model is simply described as a linear equation that represents the...