Linearity Assumption & The OLS Regression…

An attempt at explaining the difference between a linear relationship and a linear model when trying to connect the Y (dependent variable) with the Xes (independent variables) in a linear regression setup. The relationship could be non-linear but can be modeled as linear by employing some simple math tricks. More on this in the pane below.

Until later…

Image credit – SparkFun Electronics, Flickr

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