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Regression Analysis with Python
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At the core of linear regression, there is the search for a line's equation that it is able to minimize the sum of the squared errors of the difference between the line's y values and the original ones. As a reminder, let's say our regression function is called h, and its predictions h(X), as in this formulation:

Consequently, our cost function to be minimized is as follows:

There are quite a few methods to minimize it, some performing better than others in the presence of large quantities of data. Among the better performers, the most important ones are Pseudoinverse (you can find this in books on statistics), QR factorization, and gradient descent.
Looking under the hood of a linear regression analysis, at first it could be puzzling to realize that we are striving to minimize the squared differences between our estimates and the data from which we are building the model. Squared differences are not...
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