Predicting Car Prices Part 1: Linear Regression

Let's walk through an example of predictive analytics using a data set that most people can relate to:prices of cars. In this case, we have a data set with historical Toyota Corolla prices along with related car attributes. In predictive models, there is a response variable(also called dependent variable), which is the variable that we are interested in predicting. The independent variables(the predictors also called features in the machine learning community) are one or more numeric variables we are using to predict the response variable. Given we are using a linear regression model, we are assuming the relationship between the independent and dependent variables follow a straight line.