Summary

In this chapter, we thoroughly went through basic simple linear regression, demystified some core concepts in linear regression, and inspected the linear regression model from several perspectives. We also studied the problem of collinearity in multiple linear regression and proposed solutions. At the end of the chapter, we covered two more advanced and widely used regression models, lasso regression and ridge regression. The concepts introduced in this chapter will be helpful for our future endeavors. In the next chapter, we are going to study another important family of machine learning algorithms and the statistics behind it: classification problems.