Deep Learning By Example

Learning model coefficients

In order to estimate the coefficients of our model, we need to fit the data with a regression line that gives a similar answer to the actual sales. To get a regression line that best fits the data, we will use a criterion called least squares. So, we need to find a line that minimizes the difference between the predicted value and the observed (actual) one. In other words, we need to find a regression line that minimizes the sum of squared residuals (SSresiduals). Figure 2 illustrates this:

Figure 2: Fitting the data points (sample of TV ads) with a regression line that minimizes the sum of the squared residuals ...