[ML beginner][Part 2 b]Supervised Learning: Regression intuition
Let's get started.
So regression analysis is a machine learning predictive modeling technique that determines the relationship between dependent and independent variable.
What does that mean tho?
Let us have a situation, say you are the CEO of a multinational company, you have some past data on how much sales and advertisement has been done throughout the years.
Now the question is: You need to figure out how much money you should spend on advertising so that you get maximum sales.
Now here are some fine points: You cannot just dump a lot of money in your advertising budget, you just need to hit that sweet spot where per dollar sales is fetching the maximum amount of sales.
So what should we do?
Well, that is why we use regression analysis, it will find out the relationship between the amount of money invested and the expected sales made.
Once you get the relationship out of it, you can simply figure out how much additional money you should invest to get that estimated sale figures.
Next post, we will be talking about the coding aspect of how it works in practice.
Thanks for the read.