R: Predictive Analysis

Chapter 2. Linear Regression

We learned from the previous chapter that regression problems involve predicting a numerical output. The simplest but most common type of regression is linear regression. In this chapter, we'll explore why linear regression is so commonly used, its limitations, and extensions.

Introduction to linear regression

In linear regression, the output variable is predicted by a linearly weighted combination of input features. Here is an example of a simple linear model:

The preceding model essentially says that we are estimating one output, denoted by , and this is a linear function of a single predictor variable (that is, a feature) ...