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Core Algorithms

Regression: Fitting Lines That Predict

7 min+65 XPStep 1/9

Draw the line that explains the data

Plot house price against square footage and the points form a cloud trending upward. Regression asks: what single straight line captures that trend best?

'Best' has a precise meaning. Each point has a residual — the vertical gap between the real price and the line's prediction. Least squares picks the line that minimizes the sum of squared residuals.

analogy

Like lowering a ruler onto a scatter of points and tilting it until the points hug it as tightly as possible — the residuals are the gaps you can't close.