error = actual net worth – predicted net worth
(taken from training data, predicted by regression line)
predicted new worth = 218.75
actual net worth = 200
error(distance) = -18.75
Σ|error| on all data points
Σ|error^2| on all data points
minimizes Σall training point (actual – predicted)^2
several algorithms
-Ordinary least squares(OLS)
-> used in sklearn LinearRegression
-Gradient descent
SSE isn’t perfect! incline
