Univariate Linear Regression

Univariate Linear Regression

In Univariate Linear Regression, we have one independent variable $x$ which we use to predict a dependent variable $y$.

We will be using the Tips Dataset from Seaborn’s Datasets to illustrate theoretical concepts.

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We will be using the following columns from the dataset for Univariate Analysis.

• Total_bill: It is the total bill of food served.

• Tip: It is the tip given on the cost of food.

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Goal of Univariate Linear Regression: The goal is to predict the “tip” given on a “total_bill”. The regression model constructs an equation to do so.

If we plot the scatter plot between the independent variable (total_bill) and dependent variable (tip), we will get the plot below.

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• We can see that the points in the scatter plot are mostly scattered along the diagonal.

• This is an indication that there can be some positive correlation between the total_bill and tip. This will be fruitful in modeling.

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Working

The univariate Linear Regression model comes up with the following equation of the straight line.

$\hat{y} = w_0 + w_1 * x$

Or

$tip\_predicted = w_0 + w_1 * total\_bill$

Goal: Find the values of $w_0$ and $w_1$, where $w_0$ and $w_1$ are the parameters, so that the predicted tip ($\hat{y}$) is as close to the actual tip ($y$) as possible. Mathematically, we can model the problem as seen below.

$J(w_0, w_1)$ = $\frac{1}{2m}\sum_{i=1}^{m}(\hat{y}^i-y^i)^2$

• $J(w_0, w_1)$ is the cost function, which an algorithm tries to minimize by finding the values of $w_0$ and $w_1$. These values give us the minimum value of the above function.

• $y^i$ is the actual output value of a training instance $i$, where $i =1,2,3 ..$

• $\hat{y}^i$ ...