Linear model

A linear model consists of a matrix which contains all coefficients. We can then write our set of possible regression functions like this:

Of course there are also other models which can include non-linearities like:

Simple linear model

This is how a simple two dimensional linear model can look like:

The input is the x vector with and as values. The same applies to the weights. Finding the best weights to describe with our function is called Fitting.

Usually a residual error is part of the equation. A lot of times it has a Gaussian distribution.

In vector notation the general linear model looks like this:

Now we have to optimize the model parameters: