Regression • A measure of the relation between the mean value of one variable and corresponding values of other variables. • Widely used for predicting and forecasting
Linear Regression • Simple linear regression is a statistical method that allows us to summarize and study relationships between two continuous (quantitative) variables.
Linear Regression (Cont. ) • The formula for linear regression is ✓Y’ is the Predicted Score ✓X is the Explanatory variable ✓Theta 1 is the Slope of the line ✓Theta 0 is the Y intercept How to choose Theta values? ? ?
Cost Function The function which is used to calculate Theta terms to get best regression line which fits in to our data.
Cost Function (Cont. ) • Cost Function • Our goal is to
Gradient Descent
What is Logistic Regression? • Logistic regression measures the relationship between the categorical dependent variable and one or more independent variables. • How does the probability of getting lung cancer change for every X cigarettes smoked per day? • Do body weight calorie intake, fat intake, and age have an influence on heart attacks (yes vs. no)? • Should a bank give a personal loan or not? • Is an individual transaction is fraudulent or not?
When to use Logistic Regression ? • Y Value always take only 2 values. • Which accepts “binary” or “dichotomous. ”