Numpy Beginner's Guide (Update)

Time for action – predicting price with a linear model

Keeping an open mind, let's assume that we can express a stock price p as a linear combination of previous values, that is, a sum of those values multiplied by certain coefficients we need to determine:

In linear algebra terms, this boils down to finding a least-squares method (see https://www.khanacademy.org/math/linear-algebra/alternate_bases/orthogonal_projections/v/linear-algebra-least-squares-approximation).

Note

Independently of each other, the astronomers Legendre and Gauss created the least squares method around 1805 (see http://en.wikipedia.org/wiki/Least_squares). The method was initially ...