0
25
50
75
100
0
25
50
75
100
Error: 165
The goal is to minimize this number (Mean Squared Error).
Equation: y = mx + b
The machine "learns" by automatically adjusting m and b until the Error is as low as possible.
What is a Best Fit Line?
Linear regression tries to find a single line that passes through the "center" of a cloud of data points. It minimizes the total distance (error) between itself and every piece of data.
Founder Strategy
Regression is for continuous forecasting. Use it for MRR growth, burn rate projection, and churn estimation. Don't use it for things that shouldn't be linear (like viral growth, which is exponential).