What is Linear Regression?

Linear Function can be defined as a Mathematical function on a 2D plane as, Y =Mx +C, where Y is a dependent variable and X is Independent Variable, C is Intercept and M is slope and same can be expressed as Y is a Function of X or Y = F(x).

At any given value of X, one can compute the value of Y, using the equation of Line. This relation between Y and X, with a degree of the polynomial as 1 is called Linear Regression.

In Predictive Modeling, LR is represented as Y = Bo + B1x1 + B2x2
The value of B1 and B2 determines the strength of the correlation between features and the dependent variable.

Example: Stock Value in $ = Intercept + (+/-B1)*(Opening value of Stock) + (+/-B2)*(Previous Day Highest value of Stock)