Regularization
We mentioned earlier that linear regression can become unstable, that is, highly sensitive to small changes in the training data, if features are correlated. Consider the extreme case where two features are perfectly negatively correlated such that any increase in one feature is accompanied by an equivalent decrease in another feature. When we apply our linear regression algorithm to just these two features, it will result in a function that is constant, so this is not really telling us anything about the data. Alternatively, if the features are positively correlated, small changes in them will be amplified. Regularization helps moderate this.
We saw previously that we could get our hypothesis to more closely fit the training data ...
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